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

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

  • 1. Fiscal Year-ending March 2014 Briefing on the Results for the Second Quarter October 22, 2013 Ricoh Leasing Company, Ltd. 0
  • 2. 1. Performance Overview (Six months ended September 30, 2013) 1
  • 3. Overview of the 2nd Quarter 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 2
  • 4. Consolidated Results Performance Overview (100 million yen, %) 12/9 13/9 Actual Actual YoY (%) 1,171 1,208 3.1 143 142 -0.6 Selling, general and administrative expenses 57 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 -0.5 167.42 155.81 -11.61 20.50 21.50 1.00 Revenue Gross profit EPS Dividends per share 3
  • 5. Breakdown of Revenue Performance Overview (100 million yen, %) FY12/9 Actual FY13/9 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 1,171 1.8 1,208 3.1 Total revenue 4
  • 6. Revenue for Each 2nd Quarter Performance Overview (100 million yen) 1,400 1,143 1,150 1,151 1,171 09/9 10/9 11/9 12/9 1,208 1,200 1,000 800 600 400 200 0 13/9 5
  • 7. Factors Affecting Operating Income Items of Gross Profit Performance Overview Items of selling, general and administrative expenses Decrease in expenses -3 Decrease in financing cost Increase in financial Increase in income +1 installment Increase in revenue +1 re-leasing Change in -2 accounting standard for leases Decrease in gross margin of leasing 86 (100 million yen) +3 -8 -6 +1 +1 Increase in allowance for bad debt 80 Actual for 2Q of FY2012 Actual for 2Q of FY2013 6
  • 8. Operating Income for Each 2nd Quarter Performance Overview (100 million yen) 100 87 86 11/9 12/9 80 78 75 52 50 25 0 09/9 10/9 13/9 7
  • 9. Net Income for Each 2nd Quarter Performance Overview (100 million yen) 60 52 51 48 44 45 30 30 15 0 09/9 10/9 11/9 12/9 13/9 8
  • 10. Transaction Volume by Business Performance Overview (100 million yen, %) 12/9 Actual 13/9 YoY (%) Actual YoY (%) 1,165 2.9 1,244 6.8 42 -23.0 53 26.6 177 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 1,487 5.6 1,611 8.3 Financial lease Operating lease Installments Total transaction volume * The above transaction volume is based on acceptance inspections. 9
  • 11. Total Transaction Volume for Each 2nd Quarter Performance Overview (100 million yen) Transaction volume of financial services business 2,000 1,611 Transaction volume of lease/installment business 1,487 1,600 1,222 1,263 69 1,409 109 101 107 81 1,200 1,502 1,385 800 1,301 1,141 1,193 400 0 09/9 10/9 11/9 12/9 13/9 10
  • 12. Transaction Volume of Lease/installment Business Performance Overview (100 million yen, %) 12/9 Actual Japan Leasing Association 13/9 YoY (%) Actual Accumulated in 13/4 to 8 2013 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 52 19.8 60 15.3 33.4 122 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 1,385 6.5 1,502 8.4 4.6 Industrial machinery Commercial and service industry equipment Total transaction volume 11
  • 13. Transaction Volume of Lease/installment Business for Each 2nd Quarter (Total) Performance Overview (100 million yen) 1,502 1,600 1,385 1,301 1,400 1,141 1,193 1,200 1,000 800 600 400 200 0 09/9 10/9 11/9 12/9 13/9 12
  • 14. Transaction Volume of Lease/installment Business for Each 2nd Quarter (Office and IT-related Equipment) IT-related (100 million yen) Performance Overview 960 1,000 812 824 09/9 10/9 874 875 11/9 12/9 800 600 400 200 0 13/9 13
  • 15. Transaction Volume of Lease/installment Business for Each 2nd Quarter (Medical Equipment) Performance Overview 201 (100 million yen) 200 191 193 11/9 12/9 173 161 150 100 50 0 09/9 10/9 13/9 14
  • 16. Operating Results by Segment for Each 2nd Quarter (Lease/installment Business) Performance Overview Segment income (right axis) Revenue (left axis) (100 million yen) 1,200 1,118 1,122 1,173 1,141 1,124 1,000 81 71 800 78 70 100 47 50 0 09/9 10/9 11/9 12/9 13/9 15
  • 17. Balance of Operating Loans of Financial Services Business for Each 2nd Quarter Performance Overview 1,044 979 (100 million yen) 1,000 823 733 800 696 600 400 200 0 09/9 10/9 11/9 12/9 13/9 16
  • 18. Number of Monthly Transaction Cases of Collection Agency Services of Financial Services Business for Each 2nd Quarter Performance Overview (10,000 cases) 92 100 66 75 56 50 45 34 25 0 09/9 10/9 11/9 12/9 13/9 17
  • 19. Operating Results by Segment for Each 2nd Quarter (Financial Services Business) Revenue Performance Overview Segment income (100 million yen) 27.4 30 24.9 22.5 22.4 20.7 20 11.9 9.0 9.3 13.0 9.5 10 0 09/9 10/9 11/9 12/9 13/9 18
  • 20. Half-year Balance of Operating Assets by Half-year Period Performance Overview (100 million yen) 7,000 6,000 5,709 5,694 733 776 5,000 404 82 412 84 5,811 823 418 98 5,986 6,142 979 925 461 96 436 93 6,333 1,039 508 97 6,520 1,044 567 107 Installments Operating lease 4,000 3,000 2,000 Loans 4,490 (238) 4,420 (239) 4,471 (240) 4,529 (242) 4,605 (243) 10/9 11/3 11/9 12/3 12/9 4,687 (244) 4,802 (245) 13/3 Financial lease (of which, securitized portion) 13/9 1,000 0 *Figures show balances with securitized portions not deducted. 19
  • 21. Half-year Default Rate & Default Loss by Half-year Period 0.65 Performance Overview (%) 0.80 Default rate (right axis) = Default loss amount / Average balance of operating assets 0.60 0.46 0.39 0.37 (100 million yen) 0.26 0.27 0.28 25 0.40 0.20 20 Default loss amount (left axis) 20 0.00 14 15 11 11 10 8 12/3 12/9 9 8 5 0 10/9 11/3 11/9 13/3 13/9 20
  • 22. Half-year Selling, General & Administrative (SG&A) Expenses by Half-year Period Performance Overview (100 million yen) 105 100 Total selling, general & administrative expenses 30 80 71 65 60 29 64 57 62 58 32 31 31 31 31 31 Personnel expenses 40 Others 27 42 20 14 28 (of which, allowance for bad debt from earthquake disaster: 30) 5 0 10/9 11/3 11/9 34 32 29 30 Allowance for bad debt 1 -1 12/3 -6 -3 12/9 13/3 13/9 * Negative value represents reversal of allowance for bad debt. 21
  • 23. Interest-bearing Fixed-charge Interest-bearing Debts and Fixed-charge Coverage Ratio Half-year by Half-year Period Fixed-charge coverage ratio (right axis) (100 million yen) 49.0 50.6 55.6 Performance Overview 57.9 55.5 47.9 60% 50% 5,648 6,000 5,000 57.1 4,983 4,912 5,019 5,103 5,264 5,425 4,000 Total procurement amount (left axis) Short term Long term 3,000 2,000 17 1,000 0 10/9 14 11/3 11 11/9 13 12/3 10 10 9 12/9 13/3 Financing cost 13/9 * Interest-bearing debt shows balance with debts payable due to securitization not deducted. Financing costs show expenses included in gross profit on sales. 22
  • 24. 2. Financial Forecasts (Fiscal year ending March 2014) 23
  • 25. Consolidated Income Forecast Consolidated Income Forecast (100 million yen, %) 13/3 Actual Revenue Gross profit Selling, general and administrative expenses Operating income (Operating income margin) Income before special items Net income (Net profit to sales) Initial forecast 14/3 Revised Change forecast YoY (%) 2,340 285 2,360 284 2,405 284 45 0 2.8 -0.7 115 124 124 0 7.3 170 160 160 0 -6.1 7.3 6.8 6.7 -0.1 -0.6 169 159 159 0 -6.0 102 96 96 0 -6.0 4.4 4.1 4.0 -0.1 -0.4 YoY (Yen) EPS 327.26 307.52 307.52 0.00 -19.74 24
  • 26. Revenue Forecast Consolidated Income Forecast (100 million yen, %) 13/3 14/3 Actual Initial forecast Revised forecast Change YoY (%) 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 13.0 189 189 201 11 6.0 2,340 2,360 2,405 45 2.8 Leasing revenue Others Total revenue 25
  • 27. Revenue by Year Consolidated Income Forecast (100 million yen) 3,000 2,285 2,297 2,306 2,340 2,405 10/3 11/3 12/3 13/3 14/3 Forecasts 2,500 2,000 1,500 1,000 500 0 26
  • 28. Forecasts of Factors Affecting Operating Income of FY2013 Consolidated Income Forecast Items of selling, general and administrative expenses Items of Gross Profit Decrease in expenses -3 Change in accounting standard for leases -4 Increase in re-leasing Increase in installment revenue Increase in financial income +2 (100 million yen) +5 -13 +1 -10 +2 Decrease in gross margin of leasing 170 Increase in allowance for bad debt 160 FY2012 actual FY2013 forecasts 27
  • 29. Operating Income by Year Consolidated Income Forecast (100 million yen) 200 168 170 12/3 13/3 160 122 150 115 100 50 0 10/3 11/3 14/3 Forecasts 28
  • 30. Net Income by Year Consolidated Income Forecast 102 (100 million yen) 96 94 100 75 70 66 50 25 0 10/3 11/3 12/3 13/3 14/3 Forecasts 29
  • 31. Transaction Volume Plan Consolidated Income Forecast (100 million yen, %) FY13/3 FY14/3 Actual Forecasts YoY (%) 2,332 2,426 4.0 86 90 3.7 351 367 4.5 Lease/installment business 2,770 2,883 4.1 Financial services business 216 217 0.4 2,986 3,100 3.8 Financial lease Operating lease Installments Total transaction volume 30
  • 32. Lease/installment Business: Forecasts of Transaction Volume by Category Consolidated Income Forecast (100 million yen, %) FY13/3 Actual FY14/3 Forecasts YoY (%) 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 2,770 2,883 4.1 Office and IT-related equipment Total 31
  • 33. Total Transaction Volume by Year Consolidated Income Forecast (100 million yen) 4,000 3,100 2,986 2,799 3,000 2,421 2,476 2,000 1,000 0 10/3 11/3 12/3 13/3 14/3 Forecasts 32
  • 34. Balance of Operating Assets by Year Consolidated Income Forecast (100 million yen) 6,333 7,000 5,739 5,694 10/3 11/3 6,600 5,986 6,000 5,000 4,000 3,000 2,000 1,000 0 12/3 13/3 14/3 Forecasts *Figures show balances with securitized portions not deducted. 33
  • 35. Basic Strategies for FY2013 (Fiscal year ending March 2014) Consolidated Income Forecast 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 34
  • 36. Priority Sales Strategies for FY2013 (Fiscal year ending March 2014) Consolidated Income Forecast 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 35
  • 37. New Growth Area (Environment) Consolidated Income Forecast In order to reduce environmental impact, respond to needs for leasing environmentally friendly equipment for power saving, power generation and power storage LED Storage cell Groundwater membrane filtration system Solar power generation FY13/9 Actual Transaction volume for environment-related segments FY14/3 YoY growth 3,900 million yen Forecasts 3.8 times 7,200 million yen YoY growth 2.2 times 36
  • 38. (Nursing-care) New Growth Area (Nursing-care) Consolidated Income Forecast Total support for nursing-care business operators nursing- • Equipment leasing for nursing-care business operators Rehabilitation equipment, nursing-care vehicles, PCs, related nursingsoftware, printers, multi-function machines multi- • Loan for nursing-care business operators Launched in May (100 million yen) Transaction volume of factoring for nursing-care benefits 200 180 • Services for nursing-care business operators • Management support for nursing-care nursingbusiness operators 150 100 90 • Collection agency service • Factoring services for nursing-care nursingbenefits 50 22 0 3 11/3 12/3 13/3 14/3 (forecasts) 37
  • 39. Medium-Term Medium-Term Management Strategy Achievement Rate Estimates (Performance & Management Indices) FY2010 (Fiscal year ended March 2011) Actual Medium-Term Management Strategy Targets (FY2013) Announced in April 2011 Announced in April 2012 Consolidated Income Forecast FY2013 (Fiscal year ending March 2014) Estimate YoY (%) Compared to FY2010 (%) Revenue 229,700 million yen 230,000 million yen 240,000 million yen 240,500 million yen 100.2 104.7 Operating income 12,200 million yen 14,000 million yen 17,500 million yen 16,000 million yen 91.4 130.6 Net income 7,000 million yen 8,000 million yen 10,500 million yen 9,600 million yen 91.4 136.7 Increase/Decrease Operating income margin 5.3% 6.1% 7.3% 6.7% -0.6 +1.4 ROA 1.13% 1.26% 1.58% 1.34% -0.24 +0.21 ROE 7.1% 6.8% 8.5% 7.8% -0.7 +0.7 38
  • 40. Medium-Term Medium-Term Management Strategy Achievement Rate Estimates (Sales Strategies) FY2010 (Fiscal year ended March 2011) Actual Medium-Term Management Strategy Targets (FY2013) Announced in April 2011 Announced in April 2012 Consolidated Income Forecast FY2013 (Fiscal year ending March 2014) Estimate Lease/ installment business 160,200 million yen 33,500 million yen 232,200 million yen 176,000 million yen 40,000 million yen 272,500 million yen 180,000 million yen 41,000 million yen 288,300 million yen Financial services business 15,300 million yen 21,500 million yen Total transaction volume 247,600 million yen • Balance of operating assets * Before deducting securitized portions of leases 569,400 million yen Office and IT-related equipment Medical equipment Number of monthly transaction cases of collection agency services Commission received 540,000 cases 2,700 million yen YoY (%) Compared to FY2010 (%) 102.3 112.3 102.5 122.2 105.8 124.1 21,700 million yen 100.9 141.0 294,000 300,000 million yen million yen 310,000 million yen 103.3 125.2 595,000 625,000 million yen million yen 660,000 million yen 105.6 115.9 100.0 185.2 100.0 132.4 1 million cases 3,600 million yen 1 million cases 3,600 million yen 39
  • 41. Reliability for the Future 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 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. 40