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Third Quarter of Fiscal Year Ending March 2021 (FY2020) Financial Highlights
1. Third Quarter of
Fiscal Year
Ending March
2021 (FY2020)
Financial
Highlights
January 28, 2021
Ricoh Leasing Company, Ltd.
2. Table of Contents
2
1. Consolidated Results for the Third Quarter of
Fiscal Year Ending March 2021
2. Performance by Segment
3. Consolidated Income Forecast for Fiscal Year
Ending March 2021
4. Reference Material
4. 4
1. Both net sales and profit increased
Net sales increased for the 11th consecutive period. Gross profit increased for the seventh
consecutive period.
Despite the posting of an allowance for doubtful accounts caused by the impact of COVID-
19, operating profit increased to an improvement in return on assets.
2. Operating assets stood at 950.0 billion yen (decreased 44.4
billion yen from the end of the previous fiscal year).
Operating assets decreased due to the securitization of lease receivables.
4. Progress is made as planned in achieving the operating profit
forecast, 16.7 billion yen, for the fiscal year ending March 2021.
Uncertainly remains in the market from the end 2020. Although we recorded an increase in
profit, we carefully monitoring performance for the full-year forecast.
* In this document, “Profit Attributable to Owners of Parent” is listed as “Net Income.”
* Operating assets, including securitized lease receivables, were 1,020.8 billion yen (increased 1.7 billion yen from the end of the
previous fiscal year).
Financial Performance Overview for the Third
Quarter of Fiscal Year Ending March 2021
5. 5
• Gross profit increased, due to an improvement in return on operating assets and growth in the
investment business.
• SG&A was reduced, and priority management was strengthened. Additional allowance for
doubtful accounts is curbed.
Consolidated Results
(Billion Yen)
* Actual ROA and ROE are annualized numerical figures
2020/3 2021/3
3Q
cumulative total
3Q
cumulative total
Growth
Rate
Full-year
Forecast
249.1 249.4 0.1% 330.4 75.5%
26.3 28.3 7.6% 36.9 76.9%
12.3 13.7 11.4% 20.2 68.2%
Provision of Allowance for Doubtful
Accounts
1.2 1.8 50.3% 3.2 58.1%
14.0 14.6 4.2% 16.7 87.5%
13.8 14.4 4.5% 16.4 88.1%
9.5 9.9 3.9% 11.3 87.8%
YoY change
ー ー － 95.00 －
309.07 322.02 12.95 366.59 －
ー ー － 25.9% －
1.18% 1.15% (0.03%) 0.97% －
7.2% 7.1% (0.1%) 6.1% －
ROE（Return on Equity Ratio）
Selling, General and
Administrative Expenses
Ordinary Profit
Net Income
Dividend per Share(yen)
Earnings per Share(yen)
Dividend Payout Ratio
ROA（Return on Asset Ratio）
Operating Profit
2021/3
Progress
Rate
Net Sales
Gross Profit
6. 6
14.01
billion yen
14.60
billion yen
+0.25
+0.59
+1.23
+0.07
Factors Affecting Operating Profit
Gross Profit
Selling, General and
Administrative Expenses
(0.16)
(0.45)
(0.32)
(0.62)
20/3
3Q
cumulative total
21/3
3Q
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
Other
expenses
(Billion Yen)
Allowance
for Doubtful
Accounts
7. • Investments in leases decreased due to the securitization of off-balance sheet lease receivables.
• We retained funds on hand in consideration of liquidity risk.
7
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
Actual
End of 3Q
Actual
Increase/Dec
rease at the
End of the
Previous Term
Actual
End of 3Q
Actual
Increase/Dec
rease at the
End of the
Previous Term
Cash and deposits 0.8 31.3 30.4
Short-term
Interest-Bearing Debt 211.1 236.3 25.1
Lease receivables and
investments in leases 597.5 532.6 (64.8)
Long-term
Interest-Bearing Debt 608.4 590.0 (18.4)
Installment receivables 172.1 174.2 2.1
Long-term payables
under securitization of
lease receivables
40.0 40.0 0.0
Accounts receivable
- operating loans
181.6 193.7 12.0 Other liabilities 109.4 100.8 (8.6)
Assets for lease 50.2 54.0 3.7 Total Liabilities 969.0 967.1 (1.9)
Allowance for doubtful
acounts
(9.6) (10.2) (0.5) Total net assets 181.6 189.1 7.4
Other assets 157.9 180.4 22.5
Total assets 1,150.7 1,156.2 5.5 Total liabilities and net assets 1,150.7 1,156.2 5.5
2021/3 2021/3
8. 562.7 576.1 589.8 622.1 603.4
20.8 23.0 29.0
30.5
30.8
95.8
111.3
133.1
152.9
153.9
129.2 143.7
160.6
181.6 193.7
2.0
9.2
31.7 38.7
808.6
856.3
921.9
1,019.1 1,020.8
0.18% 0.17% 0.17%
0.16% 0.16%
17/3 18/3 19/3 20/3 21/3
3Q
Investment Business
Loans
Installment Sales
Operating Leases
Finance Leases
Default Rate
* The balance of operating assets includes the
amount of securitization of lease receivables
(Amount of Securitized Lease Receivables for
the third 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 third quarter of 21/3)
8
• Operating assets, including
securitized lease receivables,
increased 1.7 billion yen from
the end of the previous fiscal
year, driven by the loan business.
• The default rate remained at a
low level.
Operating Assets and Default Rate
(Billion yen)
9. 9
• Funds were procured through the
securitization of lease receivables and
positive impact finance (PIF).
• Financial expenses increased due to
an increase in funds procured,
refinancing and temporary
deterioration in the financing
environment.
Total Procurement Amount and
Financial Expenses
* Payables under securitization of lease receivables
includes off-balance sheet financing.
* PIF: : Loans aimed at supporting business activities
based on the assessment of the environmental, social
and economic impact of the business.
* Financial expenses ratio = Financial expenses /
Average balance of operating assets
* For the third quarter of 21/3, financial expenses
ratio has been calculated by annualizing financial
expenses.
Total Procurement Amount (Billion yen)
Financial Expenses and Financial Expenses Ratio (Billion yen)
112.1 111.0 96.2 67.2 50.0
127.9 95.7 134.4 143.8 186.2
426.6 499.9
524.4 608.4 590.0
20.0
20.0
20.0
60.0 100.0
686.6
726.6
775.2
879.5
926.3
17/3 18/3 19/3 20/3 21/3
3Q
Payables under securitization
of lesase receivables
Long-term Debt
Long-term Debt within one
year
Short-term Debt
0.89 0.82 0.77 0.83 1.00
0.27 0.25 0.25 0.29
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 21/3
3Q
4Q
1-3Q
Financial
Expenses Ratio
11. 11
Finance Leases
Operating Leases
Installment Sales
Rental
Leases and Installment Sales
Business
Financial Services Business
Leases & Finance Business
Services Business
Investment Business
Loans
Commission Business
• Collection Agency Services
• Factoring Services for
Healthcare & Nursing-Care
Facilities
Housing Rental
Finance Leases
Operating Leases
Installment Sales
Rental
Loans
Collection Agency Services
Factoring Services for
Healthcare & Nursing-Care
Facilities
Housing Rental and Real Estate
Solar Power Generation
Solar 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.
12. 12
Performance by Segment
• In Leases & Finance Business, though sales declined due to the securitization of lease receivables,
profit increased due to an improvement in return on assets.
• Investment Business saw increases in sales and profits as a result of active business investment to
date.
Net sales and profit (Billion Yen)
Operating Assets (Billion Yen)
* The balance of operating assets includes the amount of the securitizations of lease receivables
2020/3
3Q
cumulative
total
3Q
cumulative
total
Growth
Rate
Net Sales 244.5 243.4 (0.4%)
Segment Profit 13.7 13.9 1.7%
Net Sales 3.9 4.1 4.0%
Segment Profit 1.1 1.2 3.9%
Net Sales 0.6 1.8 194.7%
Segment Profit 0.0 0.5 459.8%
Services Business
2021/3
Leases & Finance Business
Investment Business
2020/3
Actual
End of 3Q
Actual
Increase/Decrease
at the End of the
Previous Term
987.4 982.0 (5.3)
31.7 38.7 7.0
2021/3
Leases & Finance Business
Investment Business
13. 13
Actual Results of Leases ＆ Finance
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.
• In response to the second declaration of a state of emergency, we will continue remote sales by
phone and online conferences.
Transaction Volume by Contract (Billion Yen)
Leases and Installment Sales Transaction Volume by Product
2020/3
3Q cumulative
total
3Q cumulative
total
Growth
Rate
Office and IT-Related Equipment 152.2 123.6 (18.8%) (14.1%)
Medical Equipment 28.7 22.7 (20.6%) (19.8%)
Industrial Machinery 40.2 28.3 (29.6%) (16.7%)
Commercial and Service Equipment 28.1 14.6 (48.1%) (22.8%)
Transport Equipment 16.6 16.3 (1.6%) (14.7%)
Others 48.4 40.5 (16.2%) (10.2%)
314.4 246.3 (21.7%) (15.3%)
Environmental Field 43.6 37.3 (14.6%)
Total Transaction Volume for Leases and Installment Sales
2021/3 Japan Leasing
Association (cumulative
total from 20/4 to
20/11)
Growth Rate
(Billion Yen)
* The Transaction Volume for Leases and Installment Sales for the Environmental Field is included in the transaction
volume of the above.
2020/3
3Q cumulative
total
3Q cumulative
total
Growth
Rate
Finance Leases 219.0 174.3 (20.4%)
Operating Leases 13.3 13.3 0.1%
Total Leases 232.4 187.7 (19.2%)
Installment Sales 82.0 58.6 (28.5%)
314.4 246.3 (21.7%)
Loans Transaction Volume 42.0 36.0 (14.1%)
356.5 282.4 (20.8%)
2021/3
Total Transaction Volume for Leases and Installment Sales
Total Transaction Volume for Leases & Finance Business
14. 14
Actual Results of Services Business
• The number of transactions in Collection Agency Services continued to increase. The number of
new contracts recovered due to needs for avoiding contact.
• Factoring Services for Healthcare & Nursing-Care Facilities declined, reflecting applications for
termination chiefly due to public support.
Number of Transactions in
Collection Agency Services
（million cases）
Transaction Volume of Factoring
Services for Healthcare &
Nursing-Care Facilities (Billion yen)
44.6
54.0 58.2
75.1 74.7
16.0
18.0
19.9
25.4
60.6
72.0
78.1
100.6
5.9
6.7
7.9
11.1 10.5
-15
5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
17/3 18/3 19/3 20/3 21/3
3Q
1-3Q 4Q Balance
13.14 13.54
14.97
16.52 17.54
4.40 4.65
5.09
5.67
17.55
18.19
20.07
22.19
17/3 18/3 19/3 20/3 21/3
3Q
1-3Q 4Q
15. 15
Actual Results of Investment Business
• In Solar Power Generation, progress was slower than expected due to construction delays caused
by COVID-19.
• We maintained a cautious stance on purchases for Housing Rental in consideration of market
conditions. The occupancy rate of the owned homes remained high.
Investment Amount (Billion yen)
2020/3
3Q cumulative
total
3Q cumulative
total
Growth Rate
Solar Power Generation Business 2.9 4.3 50.7%
Housing Rental and Real Estate Business 8.5 5.0 (41.2%)
Total Investment Amount 11.4 9.4 (17.9%)
2021/3
Operating Assets (Billion yen)
2020/3
Actual
End of 3Q
Actual
Increase/Decrease
at the End of the
Previous Term
Solar Power Generation Business 8.3 11.8 3.4
Housing Rental and Real Estate Business 23.4 26.9 3.5
Total Operating Assets of Investment Business 31.7 38.7 7.0
2021/3
17. 17
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.
* Consecutive dividend increases include the substantial dividend increase due to the stock split in Fiscal Year Ended March 2000.
Full-year
Actual
Growth
Rate
Full-year
Forecast
Growth
Rate
Net Sales 332.2 5.8% 330.4 (0.6%)
Gross Profit 35.1 6.8% 36.9 4.9%
18.1 15.9% 20.2 11.2%
Provision of Allowance for
Doubtful 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 change
Dividend per Share(yen) 90.00 10.00 95.00 5.00
Earnings 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 and
Administrative Expenses
18. 18
＋0.71
16.70
billion yen
Gross Profit
Selling, General and
Administrative Expenses
17.01
billion yen
＋0.85
Forecast on Factors Affecting Operating Profit
• Gross profit is forecast to rise in all segments.
• 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)
21/3 Full-Year Forecast
21. 21
Pioneering new business areas and
creating business models
Business expansion under alliance with
Mizuho Leasing
Reinforcement of existing businesses and creation of
new business opportunities
・contracts of 2.5 billion yen concluded through mutual
introduction of projects and collaboration
・Start of introduction of vendors from Mizuho Leasing
・ Start of introduction of customers for Ricoh Leasing’s
Collection Agency Services
・Activities for sharing a customer contact system or
application
Business investment focused on ESG
・Investment in and a business alliance with Integrity
Healthcare Co., Ltd.
・Acquisition of shares in Enplus Inc.
(making it a subsidiary)
・Investment in Gojo & Company, Inc.
・Investment in Positive Impact funds
Business Growth Strategy Measures
Topics related to the measure progress
22. 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 Department
Tel : 03-6204-0608
Email : ir@rle.ricoh.co.jp
URL : https://www.r-lease.co.jp
Ricoh Leasing Company, Ltd.
