40
Second Quarter of Fiscal Year Ending March 2021 (FY2020) Financial Highlights October 28, 2020 Ricoh Leasing Company, Ltd.
Second Quarter of Fiscal Year Ending March 2021 (FY2020)
Financial Highlights
October 28, 2020
Ricoh Leasing Company, Ltd.
Intentionally blank
Table of Contents
3
1. Consolidated Results for the Second Quarter of Fiscal Year Ending March 2021
2. Performance by Segment
3. Mid-Term Management Plan and Topics (FY2020 - FY2022)
4. Consolidated Income Forecast for Fiscal Year Ending March 2021
5. Reference Material
4
1.Consolidated Results for the Second Quarter of Fiscal Year Ending March
2021
5
1. Net sales increased and profit decreasedNet sales increased for 11 consecutive periods, and gross profit rose for 3 consecutive periods.Operating profit and net income decreased due to an increase in allowance for doubtful accounts caused by the impact of the new coronavirus disease (COVID-19).
2. Operating assets 943.8 billion yen (50.6 billion yen decrease from the end of the previous fiscal year)Operating assets decreased due to the securitization of lease receivables and a decline in transaction volume due to the impact of COVID-19.
3. FY2020–FY2022 Mid-term Management Plan targets releasedPresented targets under the Mid-term Management Plan and long-term growth image.
4. Full-year forecast for the fiscal year ending March 2021 remains unchanged.Aiming to achieve the full-year forecast announced at the beginning of the year.
Financial Performance Overview for the SecondQuarter of Fiscal Year Ending March 2021
* In this document, “Profit Attributable to Owners of Parent” is listed as “Net Income.”
6
• Net sales and gross profit increased due to the effects of improved return on operating assets and making early repayments of large receivables.
• We carefully examined the effects of the COVID-19 disaster and recorded an allowance for doubtful accounts for individual receivables.
Consolidated Results
* Actual ROA and ROE are annualized numerical figures
(Billion Yen)2020/3 2021/3
2Qcumulative total
2Qcumulative total
GrowthRate
Full-yearForecast
165.7 173.5 4.7% 330.4 52.5%17.6 18.8 6.7% 36.9 51.1%
8.6 9.9 15.2% 20.2 49.1%
Provision of Allowance for DoubtfulAccounts 1.2 1.9 59.3% 3.2 60.3%
9.0 8.9 (1.4%) 16.7 53.6%9.0 8.7 (3.2%) 16.4 53.5%6.2 6.0 (3.0%) 11.3 53.5%
YoY change45.00 45.00 － 95.00 －
201.56 196.30 (5.25) 366.59 －22.3% 22.9% 0.6% 25.9% －1.16% 1.06% (0.10%) 0.97% －7.1% 6.6% (0.5%) 6.1% －
ROA（Return on Asset Ratio）ROE（Return on Equity Ratio）
2021/3
Net Sales
Operating ProfitOrdinary ProfitNet Income
Dividend per Share(yen)
ProgressRate
Gross Profit
Earnings per Share(yen)Dividend Payout Ratio
Selling, General andAdministrative Expenses
7
Gross Profit
9.06billion yen 8.94
billion yen
+0.16
0.12billion yen
リース・割賦粗利
+0.40
+0.68
+0.05
(0.71)
Factors Affecting Operating Profit
Selling, General and Administrative Expenses (Billion Yen)
Leases & Finance Business
Gross Margin for Leases and Installment
Sales Business
Gross Margin for
Loans
Gross Margin for Services Business
Gross Margin for Investment
Business
Financial Expenses Human
Resources
Other expenses
Allowance for Doubtful
Accounts
20/3 2Q
cumulative total
(0.13)
(0.34)
(0.24)
21/3 2Q
cumulative total
• Total assets decreased from the end of the previous fiscal year due to securitization of off-balance sheet lease receivables.
• We retained funds on hand to cope with liquidity risk.
8
Consolidated Balance Sheets
* Allowance for doubtful accounts shows the total of current assets and non-current assets.* Long-term debt within one year is included in short-term Interest-Bearing debt.
(Billion Yen)
2020/3 2020/3
ActualEnd of 2Q
Actual
Increase/Decrease at theEnd of thePrevious
Term
ActualEnd of 2Q
Actual
Increase/Decrease at theEnd of thePrevious
Term
Cash and deposits 0.8 21.2 20.3 Short-termInterest-Bearing Debt 211.1 223.1 11.9
Lease receivables andinvestments in lesases 597.5 539.9 (57.5) Long-term
Interest-Bearing Debt 608.4 583.7 (24.7)
Installment receivables 172.1 172.1 (0.0)Long-term payablesunder securitization oflease receivables
40.0 40.0 0.0
Accounts receivable- operating loans 181.6 184.2 2.6 Other liabilities 109.4 102.1 (7.3)
Assets for lease 50.2 53.0 2.7 Total Liabilities 969.0 948.9 (20.0)Allowance for doubtfulacounts (9.6) (10.6) (0.9) Total net assets 181.6 186.4 4.7
Other assets 157.9 175.4 17.5Total assets 1,150.7 1,135.4 (15.3) Total liabilities and net assets 1,150.7 1,135.4 (15.3)
2021/3 2021/3
9
• Operating assets decreased by 4.4 billion yen from the end of the previous fiscal year due to a decline in transaction volume for the impact of COVID-19.
• The default rate remained at a low level, although default loss amount increased.
Operating Assets and Default Rate
* The balance of operating assets includes the amount of securitization of lease receivables (Amount of Securitized Lease Receivables for the second quarter of 21/3: 70.8 billion yen).
* Default rate = Default loss amount / Average balance of operating assets (default rate has been calculated by annualizing the default loss amount for the second quarter of 21/3)
(Billion yen)
562.7 576.1 589.8 622.1 610.7
20.8 23.0 29.030.5 30.495.8 111.3
133.1152.9 152.0
129.2143.7
160.6
181.6 184.22.0
9.2
31.7 37.1
808.6856.3
921.9
1,019.1 1,014.6
0.18% 0.17% 0.17% 0.16%0.18%
17/3 18/3 19/3 20/3 21/32Q
Investment Business
Loans
Installment Sales
Operating Leases
Finance Leases
Default Rate
10
* Payables under securitization of lease receivables includes off-balance sheet financing.
• Diversified financing by securitization of lease receivables.
• Interest-bearing debt temporarily increased due to retaining funds on hand.
• Financial expenses increased due to an increase in interest-bearing debt and temporary deterioration in the financing environment.
Total Procurement Amount
Financial Expenses and Financial Expenses Ratio
Total Procurement Amount and Financial Expenses
(Billion yen)
(Billion yen)
* Financial expenses ratio = Financial expenses / Average balance of operating assets
* For the second quarter of 21/3, financial expenses ratio has been calculated by annualizing financial expenses.
0.60 0.55 0.51 0.54 0.67
0.56 0.52 0.51 0.58
1.16 1.08 1.02 1.12
0.15% 0.13% 0.12% 0.12% 0.14%
-0.50%
-0.30%
-0.10%
0.10%
0.30%
17/3 18/3 19/3 20/3 21/32Q
3-4Q
1-2Q
112.1 111.0 96.2 67.2 34.6
127.9 95.7 134.4 143.8 188.4
426.6 499.9 524.4 608.4 583.7
20.0 20.0 20.060.0 100.0686.6 726.6 775.2
879.5 906.8
17/3 18/3 19/3 20/3 21/32Q
Payables under securitizationof lesase receivables
Long-term Debt
Long-term Debt within oneyear
Short-term Debt
11
2．Performance by Segment
12
Finance LeasesOperating LeasesInstallment SalesRental
Leases and Installment Sales Business
Financial Services Business
Leases & Finance Business
Services Business
Investment Business
LoansCommission Business
• Collection Agency Services• Factoring Services for
Healthcare & Nursing-Care Facilities
Housing Rental
Finance LeasesOperating LeasesInstallment SalesRentalLoans
Collection Agency ServicesFactoring Services for Healthcare & Nursing-Care Facilities
Housing Rental and Real EstateSolar Power GenerationSolar Power Generation
Others
Former segments New segments
Outline of Segment Changes
• In accordance with changes in management segments, reporting segments were changed in the first quarter of the current fiscal year.
• Leases & Finance Business continued improvement of return on assets. Though Gross profit increased, Segment profit declined due to an increase in allowance for doubtful accounts.
• Both Services Business and Investment Business saw increases in sales and profits.
13
Net sales and profit
Operating Assets
Performance by Segment
(Billion Yen)
(Billion Yen)
* The balance of operating assets includes the amount of the securitizations of lease receivables
2020/32Q
cumulativetotal
2Qcumulative
total
GrowthRate
Net Sales 162.7 169.6 4.2%Segment Profit 8.8 8.6 (2.8%)
Net Sales 2.6 2.7 2.9%Segment Profit 0.7 0.8 4.9%
Net Sales 0.3 1.2 211.5%Segment Profit 0.0 0.3 335.5%
Leases & Finance Business
Services Business
Investment Business
2021/3
2020/3
Actual End of 2QActual
Increase/Decreaseat the End of thePrevious Term
987.4 977.5 (9.8)31.7 37.1 5.4
2021/3
Leases & Finance BusinessInvestment Business
• Transaction volume declined due to the impact of COVID-19 , the impact in the previous year of the last-minute demand before the increase in consumption tax and OS migration-related demand.
• Acquired yields of new contracts continued to improve.
14
Transaction Volume by Contract
Leases and Installment Sales Transaction Volume by Product
Actual Results of Leases ＆ Finance Business
(Billion Yen)
(Billion Yen)
* The Transaction Volume for Leases and Installment Sales for the Environmental Field is included in the transactionvolume of the above.
2020/32Q cumulative
total2Q cumulative
totalGrowth
Rate Finance Leases 156.7 118.9 (24.1%) Operating Leases 8.8 8.8 (0.2%)Total Leases 165.6 127.7 (22.9%)Installment Sales 54.2 41.7 (23.1%)
219.9 169.5 (22.9%)Loans Transaction Volume 24.1 19.8 (17.8%)
244.1 189.4 (22.4%)
2021/3
Total Transaction Volume for Leases and Installment Sales
Total Transaction Volume for Leases & Finance Business
2020/32Q cumulative
total2Q cumulative
totalGrowth
RateOffice and IT-Related Equipment 108.2 85.5 (20.9%) (12.2%)Medical Equipment 19.7 15.5 (21.2%) (14.7%)Industrial Machinery 25.1 21.1 (15.8%) (22.8%)Commercial and Service Equipment 18.4 10.9 (40.8%) (22.1%)Transport Equipment 12.0 10.5 (12.4%) (17.0%)Others 36.3 25.7 (29.1%) (10.4%)
219.9 169.5 (22.9%) (15.4%)
Environmental Field 28.1 26.5 (5.6%)
Total Transaction Volume for Leases and Installment Sales
2021/3 Japan LeasingAssociation (cumulative
total from 20/4 to20/8)
Growth Rate
8.57 8.86 9.85 10.84 11.42
8.97 9.33 10.22
11.35
17.55 18.19 20.07
22.19
17/3 18/3 19/3 20/3 21/32Q
1-2Q 3-4Q
• The number of transactions in Collection Agency Services continued to increase.• Factoring Services for Healthcare & Nursing-Care Facilities expanded through new contracts and
an increase in the number of stores of existing customers due to growing financial needs.
15
Number of Transactions in Collection Agency Services
Transaction Volume of Factoring Services for Healthcare & Nursing-Care Facilities
Actual Results of Services Business
（million cases） (Billion yen)
29.1 35.3 38.0 49.4 50.3
31.4 36.7
40.1
51.1 60.6
72.0 78.1
100.6 5.9 6.7 7.9
11.1 10.8
-15
5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
17/3 18/3 19/3 20/3 21/32Q
1-2Q 3-4Q Balance
• Although business investment in Solar Power Generation has increased steadily, progress has slowed slightly due to construction delays caused by COVID-19.
• Housing Rental and Real Estate maintained a cautious stance.
16
Investment Amount
Operating Assets
Actual Results of Investment Business
(Billion yen)
(Billion yen)
2020/32Q cumulative
total2Q cumulative
total Growth Rate
Solar Power Generation Business 0.9 2.8 209.6%Housing Rental and Real Estate Business 3.9 4.3 8.4%
Total Investment Amount 4.9 7.1 46.5%
2021/3
2020/3
Actual End of 2QActual
Increase/Decreaseat the End of thePrevious Term
Solar Power Generation Business 8.3 10.7 2.4Housing Rental and Real Estate Business 23.4 26.4 3.0
Total Operating Assets of Investment Business 31.7 37.1 5.4
2021/3
3． Mid-Term Management Plan and Topics (FY2020 - FY2022)
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Target Vision of Ricoh Leasing
Contribution to customers
Contribution to society
Happiness of employees
Create favorable circulation in the environment, society and the economy by adopting “management centered on individuals” and be a bridge to an abundant future
Cont
inuo
us v
alue
cre
atio
n
Realization of management centered on individuals
S GE
• Environment ⇒ Environmental circulation• Social ⇒ Social & Community• Governance ⇒ Business & Governance
Creation of sustainable
circulatory society
Financial Services
Advance into new businesses around the Company’s core business fields
FY2017 – FY2019 Mid-term Management Plan
FY2020 – FY2022 Mid-term Management Plan
5 to 10 years later
LeasesInstallment
Sales
18
Direction from a Long-term Perspective
Aggressive capital policy
Enhancement of corporate valueTrends
• Demographic changes• Changes in the global
environment• Technological leap
Corporate Philosophy
We will be a bridge to an abundant future
with our independent financial services
• Integrity and reliable business activities
• Services beyond expectations
• Enjoyable and active• Enhance corporate value
Business growth
Execution of SDGs commitment
Continuous value creation■ Contribution to society ■ Contribution to customers ■ Happiness of employees
Reinforce-ment of
foundation
[E] Environmental circulation Renewable energy, 3R circulation
Creation of pleasant and diverse living environments, local healthcare
[G] Business & Governance No. 1 vendor leasing, unique services
Organizational strength Solid infrastructure
Governance, internal control, management quality
Deployment & extension of measures
• Profitability• Asset efficiency
Creation of sustainable
circulatory society
19
[S] Social & Community
Quality control
Enhance-ment of
organiza-tional
strength
Business growth
Mid-term
Manage-ment Plan
Business domains
Promotion of Sustainability Management
Contributing to realizing a clean global environment rooted in
environmental circulationCreation of safe, secure and pleasant housing and living
environments
Further evolution of vendor leasing and enhancement of value provided to customersReconstruction of the rental
business
Contributing to reasonable environmental circulation and
restorationContributing to the creation of rich and vigorous communities
Contributing to economic activities — work, commerce,
manufacturing
[G] Business & Governance[S] Social & Community[E] Environmental circulation
Execution of SDGs commitment to realize CSV
Pioneering new business areas and creating business modelsBusiness expansion not dependent on assets
Business expansion under alliance with Mizuho Leasing
Development of a mission-critical system and operation structure for
pursuing high quality and high efficiency
Human resource management that links the employees’ happiness with the Company’s business expansion
Reinforcement of governance
FY2020 – FY2022 Mid-term Management PlanScheme to Realize the Target Vision
20
20.0 billion yen17.0 billion yen
FY2019 results FY2022 targets
1.1% or more1.08%
6.7% or more6.6%
1,200.0 billion yen1,019.1 billion
yen* Pre-deduction balance of securitizations of
receivables, etc.
FY2020 – FY2022 Mid-term Management PlanTargets
Operating Profit
ROA(Return on Assets)
ROE(Return on Equity)
Balance of Operating Assets
21
22
Conceptual Image of Long-term Growth
FY2020–FY2022 Mid-term Management Plan FY2023 and beyond 10 years later
[Conceptual image of profit expansion]
[New business initiatives]• Commercialization in peripheral fields
┗ In addition to RiLTA (advance payment of salary service) and accounts receivable guarantees, strengthen new services such as renewable energy-related services
• Expansion into new business areas┗ Consider housing-related, subscription collaboration, and overseas expansion┗ In addition to organic growth, consider M&A as a growth driver
→ Environment (power generation business, etc.), healthcare and nursing-care (remote medical service, nursing-care, etc.), Office (office brokerage, business BPO, etc.), housing and living(brokerage, management, renovation peripheral, etc.), Various tech companies involved (venture)
┗ Business partnership with Mizuho Leasing and the Ricoh Group is expected to produce results in all areas mentioned above.
Leases & Finance BusinessBy increasing efficiency and ingenuity, we ensure steady growth over the mid-to-long-term. Build a base for this purpose during FY2020–FY2022 Mid-term Management Plan.
Services and Investment BusinessExpand business of housing rental, equity investment, power generation, collection agency and factoring service during FY2020–FY2022 Mid-term Management Plan to become business pillars.
New businessCreate business by continuing to pursue the corporate philosophy and ESG perspective from a mid-to-long-term perspective.
23
Long-term Target
Set a path during FY2020–FY2022 Mid-term Management Plan and boost corporate value through circulation and creation
Operating profit: 30.0 billion yen or more(double of the current figure)
ROA: 1.3%ROE: 8%
Dividend Payout Ratio: 35%Productivity per person: 1.4 times
Identify and build new business centered on non-asset business
Both Services and Investment Businesses to become second and third business pillars.
Strengthen human resources and
infrastructure to ensure business
growth
Continue promotion of sustainability
management to realize corporate philosophy
Long-term target(10 years later)
Mid-term Management Plan: Business Growth Strategy ④Pioneering new business areas and creating business models
Newly establish 20.0 billion yen investment facility focused on ESG
Topic 1:Business investment focused on ESG
24
Aim
ing
for
the
goal
Create a positive impact on environmental and social issues through startup investment
Create new services and enhance corporate value through business tie-ups with investee companies
Out
line
of
inve
stm
ent
faci
lity Total investment
facility Investment period Scale of investment
20.0 billion yen About 10 years Hundreds of millions of yen (per company)
Inve
stm
ent
targ
et E
S G
Environment
Social Governance
Investment theme
Energy Healthcare AI IoT Robotics, etc.
Topic 2:Reinforcement of existing businesses and creation of new business opportunities
Mid-term Management Plan: Business Growth Strategy ⑦Business expansion under alliance with Mizuho Leasing
March 2020: Business alliance with Ricoh, Mizuho Leasing and us (in April 2020, we became an equity-method affiliate for respective companies).
Aim
ing
for
the
goal
Strong relationship with large- and medium-scale companies
Offering solutions to issues concerning clients’ balance sheets and business strategies
Actions in focus areas as well as expanding business fields
Client base mainly consists of SMEs Approx.400 thousand clients(98% are SMEs)
Expertise in vendor finance gained through transactions with approx. 6,000 vendors
Operational structure which enables processing large volume of contracts with greater efficiency and quality, such as an operational process with IT
Strengthen existing business and create new business opportunities
Prog
ress
and
de
velo
pmen
t fr
om n
ow
on
Build a vendor finance scheme by leveraging Ricoh Leasing's strengths Expand business opportunities for
both companies through expansion to Mizuho Leasing customers
Improve services by providing mutual customers with productsthat each company has strengths in
Promote creation of individual collaborative and referral projects
Trial use in Ricoh Leasing's collection agency service
Promote utilization of existing systemscentered on the mechanisms of customer contact and applications owned by Ricoh Leasing
Consider other mid-term collaboration areas to create new value Medical and environmental fields
Divided into multiple subcommittees and individual consultations, and having specific discussions with the aim of realizing and maximizing results at an early stage
25
Topic 3:Promotion of Sustainability Manegement
26
Established “Our way to Sustainability” and identified four new materialitiesWe promote Sustainability Management by carrying out “Mid-Term Sustainability Management Plan”.Details of these initiatives are included in the first integrated report issued in September 2020.
Overview of Sustainability Management
Corporate Philosophy
Mid-to-long-term vision "Become a Circulation-Creating Company"
Overview of Mid-Term Sustainability Management Plan
Our way to Sustainability
Materiality (Key issues)
In order to realize our corporate philosophy, the Group will create common value with society through sincere corporate activities and promote initiatives to achieve a sustainable society.
Contribute to clean global environment
Newly identified materialities and themes of initiatives
Enhance quality of life
Develop a virtuous cycle for a sustainable economy
Create a company and a society with happiness
③Create a community to live in (andcontinue to live in)
④Enhance life base⑤Collaborate and tie up with communities
⑧Diversity & inclusion⑨Human resources development⑩Realize work style reform based on health
management
①Mitigate and adapt to climate change②Resource circulation
⑥Create common value through business⑦Strengthen partnerships with Group
companies and business partners
27
4．Consolidated Income Forecast for Fiscal Year Ending March 2021
• Corporate capital investment continued to be restrained due to uncertainty about the future, but economic activities gradually resumed and sales activities recovered.
• The number of requests for postponement of payment has been decreasing since 2Q. The default loss is expected to remain at a low level due to the impact of administrative funding support, etc.
28
Impact of COVID-19
Segments 1Q 2Q Outlook for 3Q and 4Q
Leases & Finance Business
• Curbed new contract activitiesdue to declaration of a state of emergency
• Increase in allowance for doubtful accounts due to requests for postponement of payment
• Activated non-face-to-face activities
• Although it was generally difficult, there were also areas of business recovery such as environmental and vehicles
• The number of requests for postponement of payment has significantly decreased compared to 1Q
• Continue with non-face-to-face activities
• Acquire demand for short-term rentals
• Expect low number of new requests for postponement of payment and default losses
Services Business
• Existing customers were the driver of the overall performance during the curbed new contract activities
• Both collection agency serviceand factoring service were strong, especially for existing customers
• Growth rate to slow due to decline in 1Q sales activities
• Strengthen non-face-to-face activities such as use of the Internet, DM, etc.
Investment Business • Cautious stance on real estate • Delayed installation of some
solar power generation• Continue to monitor market
conditions, select projects to take action
Others• Continued operation by
reducing the number of employees coming to work by utilizing a "flexible vacation"
• Reduced the number of employees at work to 2/3 or less, and promoted working from home and online meetings
• Review business process and improve business
• Company-wide PC thin client system as part of work style reform
29
Consolidated Income Forecast
(Billion yen)
• Lower sales and lower profit are expected due mainly to the impact of COVID-19.There is no change in FY2020 consolidated income forecast announced on May 8,2020.
• Dividend per share of 95 yen, an increase for 26 consecutive periods, and a dividend payout ratio of 25.9% are expected.
Full-yearActual
GrowthRate
Full-yearForecast
GrowthRate
Net Sales 332.2 5.8% 330.4 (0.6%)Gros Profit 35.1 6.8% 36.9 4.9%
18.1 15.9% 20.2 11.2%
Provision of Allowance forDoubtful Accounts
2.8 76.4% 3.2 11.1%
Operating Profit 17.0 (1.5%) 16.7 (1.9%)Ordinary Profit 17.0 (1.7%) 16.4 (4.0%)Net Income 11.8 (1.0%) 11.3 (4.5%)
YoY change YoY changeDividend per Share(yen) 90.00 10.00 95.00 5.00Earnings per Share(yen) 382.80 0.20 366.59 (16.21)Dividend Payout Ratio 23.5% 2.6% 25.9% 2.4%ROA (Return on Asset Ratio) 1.08% (0.11%) 0.97% (0.11%)ROE (Return on Equity Ratio) 6.6% (0.4%) 6.1% (0.5%)
2020/3 2021/3
Selling, General andAdministrative Expenses
30
＋0.71
16.70billion yen
Gross Profit Selling, General and Administrative Expenses
17.01billion yen
＋0.85
Forecast on Factors Affecting Operating Profit• The speed of accumulating operating assets will slow down, due mainly to a decrease in transaction volume
caused by COVID-19.• Based on the strategy for enhancement organizational strength, investments to reinforce the business foundation
(human resources, IT infrastructure) will continue, and an allowance for doubtful accounts will increase.
(Billion yen)
20/3 4Q Cumulative Total
Leases & Finance Business
Gross Margin for Leases and Installment
Sales Business
Gross Margin for
Loans
Gross Margin for Services Business
Gross Margin for Investment
Business
Financial Expenses
Human Resources
Strategic Expenses
Other expenses
Allowance for Doubtful
Accounts
＋0.14＋0.29
(0.28)
(0.70)
(0.57)
(0.44)
(0.32) 0.31billion yen
21/3 Full-Year Forecast
31
Breakdown of Operating Assets —Forecast
(Billion yen)
* Pre-deduction balance of securitizations of receivables, etc.
ActualYear-on-Year
Increase/Decrease
ForecastYear-on-Year
Increase/Decrease
Finance Leases 622.1 32.3 627.0 4.8 Operating Leases 30.5 1.5 31.0 0.4Total Leases 652.7 33.9 658.0 5.2Installment Sales 152.9 19.7 158.0 5.0
805.7 53.6 816.0 10.2
Loans 181.6 21.0 206.0 24.3Leases ＆ Finance Business 987.4 74.7 1,022.0 34.5Investment Business 31.7 22.4 65.0 33.2Total Operating Assets 1,019.1 97.2 1,087.0 67.8
2020/3 2021/3
Total Transaction Volume forLeases and Installment Sales
Intentionally blank
５． Reference Material
33
34
Consolidated Statements of Income
(billion yen)
2Q cumulativetotal
GrowthRate
2Q cumulativetotal
GrowthRate
Full-yearForecast
GrowthRate
Net Sales 165.7 6.7% 173.5 4.7% 330.4 (0.6%)Leases 117.8 3.1% 120.6 2.4% 233.1 (2.2%)Installment Sales 25.5 4.0% 24.6 (3.7%) 53.2 4.1%Loans 1.5 9.2% 1.7 14.2% 3.8 15.7%Commission Received 3.0 7.2% 3.0 (0.1%) 6.1 (0.5%)Others 17.7 44.6% 23.4 31.9% 34.2 2.7%
Cost of Sales 148.1 6.3% 154.7 4.5% 293.5 (1.2%)Leases 106.6 2.6% 108.8 2.1% - -Installment Sales 24.0 3.3% 22.9 (4.5%) - -Financial Expenses 0.5 6.7% 0.6 24.1% - -Others 16.9 45.7% 22.2 31.2% - -
Gross Profit 17.6 9.5% 18.8 6.7% 36.9 4.9%
8.6 14.7% 9.9 15.2% 20.2 11.2%
Operating Profit 9.0 4.9% 8.9 (1.4%) 16.7 (1.9%)Ordinary Profit 9.0 4.1% 8.7 (3.2%) 16.4 (4.0%)Net Income 6.2 4.2% 6.0 (3.0%) 11.3 (4.5%)
2021/32021/32020/3
Selling, General andAdministrative Expenses
New Business Domains
35
Solving social issues through business activities by strengthening existing businesses and creating new business.
ESG Domain Sub-domain
ＥEnvironmental circulation
Contributing to reasonable environmental circulation and restoration
Energy (energy-creation and energy-saving)
3R (Reduce, Reuse, Recycle)
Ｓ
Social & CommunityContributing to achieving safe and secure housing and living environments to diverse customer groups and creating rich & vigorous communities
Healthcare & Wellness
Residence & Life support
Ｇ
Business & GovernanceContributing to economic activities —work, commerce, manufacturing —for society to achieve sustainable growth
Work & Commerce
Industry & Infrastructure
FY2020 – FY2022 Mid-term Management PlanBusiness Growth Strategy - 1
Further evolution of vendor leasing and enhancement of value provided to customers
Creation of safe, secure and pleasant housing and living environments
２
Contributing to realizing a clean global environment rooted in environmental circulation
３
Business Growth Strategy Measures
１
• Further enhancement of vendor support function
• Development of portal for customers and enhancement of value provided
• Deployment of measures to further upgrade assets
• Contribution to revitalization of local communities by the housing rental business + peripheral services
• Provision of diverse loans in line with the external environment
• Reinforcement of sales of solutions in the fields of healthcare and wellness
• Provision of finance services in the renewable energy field and investment in the power generation business
• Reinforcement of 3R contributing to environmental circulation and reduction of environmental load 36
FY2020 – FY2022 Mid-term Management PlanBusiness Growth Strategy - 2
Pioneering new business areas and creating business models
４
Reconstruction of the rental business
５
• Expansion of the rental business through collaboration with Ricoh Group companies
• Expansion of initiatives in the ICT field• Deployment of new rental services
Business expansion not dependent on assets
６
• Reinforcement of new field pioneering by existing products
• Development of services that meet expectations and needs of society and customers
Business expansion under alliance with Mizuho Leasing
７ • Reinforcement of existing businesses and creation of new business opportunities
• Pioneering new fields through diversification of financing methods
• Creation of new businesses through collaboration with investees and alliance partners
• Business investment focused on ESG• Taking on challenges into overseas markets
Business Growth Strategy Measures
37
FY2020 – FY2022 Mid-term Management PlanStrategy for Enhancement of Organizational Strength
38
Development of a mission-critical system and operation structure for pursuing high quality and high efficiency
１
• Development of a new mission-critical system
• Promotion of business efficiency and improvement of quality through standardization and automation
• Examination and credit function reforms (mechanisms and use of AI)
Human resource management that links the employees’ happiness with the Company’s business expansion
２
• Deployment of measures to increase the happiness of employees
• Continued promotion of diversity & inclusion• Recruitment and development of human
resources to realize business growth
Reinforcement of governance
３• Deployment of measures to increase
corporate value• Enhancement of internal control and internal
audit
Strategy for Enhancement of Organizational Strength Measures
Continue mid-to-long term investments in IT and human resources, looking toward sustainable growth
IT investment Human resource investment
New mission-critical system
Fron
t
Leases Commissions
・・・
Business-specific system Individual business
systemReinforcement of
settlement function
Expansion of profitability in each business
Man
pow
er p
lan
SalesIncrease
Increase
Maintain
Mid-to-long term investments (FY2020 – FY2022, FY2023 –FY2025 Mid-term Management Plan)
Investments for Reinforcement of Business Foundation
Digital workflowsImplementation of electronic contracts
Improvement of operating
efficiency
Reinforcement of governance
Response to remote working
Business expansion and response to
diversification
Improvement of productivity
Staff mem-bers
Opera-tions
Investing human resources in profitable divisions
Back
Common system
Billing
AssetsBusiness partners
・・・
Contents of investment Aim
Mid
dle
Common system across operations
Workflows
Documentation control
Reinforcement of human resources for creating new businesses and strengthening governance
Maintaining manpower by pursuing efficiency through using IT and improving operations
New business
・・・
39
(Million Yen)
19.9 19.9
19.2
17
19
21
18/3 19/3 20/3 21/3 22/3 23/3 24/3以降
18/3
FY2023 and onward
Productivity per person
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.
<Contact>
Corporate Planning DepartmentTel : 03-6204-0608Email : [email protected] : https://www.r-lease.co.jp
Ricoh Leasing Company, Ltd.
