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Financial_Highlights_FY20214Q.pdf

The document provides an overview of Ricoh Leasing Company's financial results for the 2022 fiscal year (FY2021). Key points include: 1. Net sales decreased but profit increased, hitting record highs due to continued improvement in returns on assets and rental business growth. 2. Operating assets increased to 984.2 billion yen due to growth in loans and investment businesses. 3. Operating profit for FY2023 is forecast to be 20 billion yen, rising for the third consecutive year and achieving management plan targets.

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May 10, 2022 Ricoh Leasing Company, Ltd. Fiscal Year Ended March 2022 (FY2021) Financial Highlights
1. Consolidated Results for Fiscal Year Ended March 2022 2. Performance by Segment 3. Mid-Term Management Plan and Topics (FY2020 - FY2022) 4. Consolidated Income Forecast for Fiscal Year Ending March 2023 5. Reference Material Table of Contents 2
1. Consolidated Results for Fiscal Year Ended March 2022 3
* Operating assets without deducting the securitization of lease receivables were 1,055.0 billion yen (increased 15.5 billion yen from the end of the previous fiscal year). 4 Financial Performance Overview for Fiscal Year Ended March 2022 * In this document, “Profit Attributable to Owners of Parent” is listed as “Net Income.” 1. Net sales decreased and profit increased. Each profit figure achieved the target and hit a record high, reflecting the continued improvement of returns on assets and growth in the Rental Business. 2. Operating assets stood at 984.2 billion yen（increased 15.5 billion yen from the end of the previous fiscal year）. Operating assets increased in Loans and Investment Business. 3. Operating profit for the fiscal year ending March 2023 is forecast to be 20.0 billion yen. Operating profit is forecast to rise for the third consecutive year and achieve the Mid-term Management Plan target.
• An increase in selling, general and administrative expenses was more than offset by gross profit, and operating profit and profits in lines below it hit record highs for the second consecutive year. • We will raise annual dividends per share to 120 yen, up from 115 yen, the full-year forecast (a rise of 20 yen year on year). Consolidated Results 5 (Billion Yen) 2021/3 2022/3 4Q cumulative total 4Q cumulative total Growth Rate Full-year Forecast 326.2 303.8 (6.9%) 312.4 97.3% 37.7 40.0 6.2% 40.0 100.1% 20.2 20.7 2.6% 21.5 96.6% 17.4 19.2 10.4% 18.5 104.2% 17.5 19.5 11.5% 18.3 106.7% 12.0 13.4 12.2% 12.6 107.0% YoY change 100.00 120.00 20.00 115.00 － 389.93 437.34 47.41 408.76 － 25.6% 27.4% 1.8% 28.1% － 1.04% 1.15% 0.11% 1.05% － 6.4% 6.9% 0.4% 6.4% － 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 2022/3 Achievement Rate Net Sales Gross Profit
Provision of allowance for Doubtful Accounts Other Expenses 21/3 4Q cumulative total (Billion Yen) Factors Affecting Operating Profit 6 Gross Profit 17.47 billion yen 19.28 billion yen +0.41 +0.41 +1.18 +0.33 +1.13 Selling, General and Administrative Expenses 22/3 4Q cumulative total (0.00) (0.83) (0.82) Human Resources Financial Expenses Gross Margin for Investment Business Gross Margin for Services Business Gross Margin for Loans Gross Margin for Leases and Installment Sales Business Leases & Finance Business
• Assets and liabilities increased from a year ago, reflecting an increase in operating assets. Consolidated Balance Sheets 7 * Allowance for doubtful accounts shows the total of current assets and non-current assets. * Long-term debt within one year(Bonds payable, Long-term borrowings) is included in short-term Interest-Bearing Debt. (Billion Yen) 2021/3 2021/3 Actual Actual Increase/ Decrease Actual Actual Increase/ Decrease Cash and deposits 11.0 4.8 (6.2) Short-term Interest-Bearing Debt 225.4 165.7 (59.6) Lease receivables and investments in leases 528.9 511.4 (17.4) Long-term Interest-Bearing Debt 590.0 647.5 57.5 Installment receivables 182.9 183.7 0.8 Long-term payables under securitization of lease receivables 40.0 40.0 - Accounts receivable - operating loans 200.6 221.9 21.2 Other liabilities 113.9 122.9 9.0 Assets for lease 54.3 61.8 7.4 Total Liabilities 969.3 976.2 6.8 Allowance for doubtful accounts (11.8) (13.2) (1.3) Total net assets 191.3 201.4 10.1 Other assets 194.7 207.0 12.3 Total assets 1,160.7 1,177.7 17.0 Total liabilities and net assets 1,160.7 1,177.7 17.0 2022/3 2022/3
• Operating assets increased 15.5 billion yen from the end of the previous year due to the accumulation of Loans and Investment Business. • Default loss amount decreased, and the default rate remained at a low level. Operating Assets and Default Rate 8 * The balance of operating assets includes the amount of securitization of lease receivables (Amount of Securitized Lease Receivables for 22/3: 70.7 billion yen). * Default rate = Default loss amount / Average balance of operating assets (Billion yen) 576.1 589.8 622.1 599.7 582.2 23.0 29.0 30.5 30.4 29.5 111.3 133.1 152.9 161.6 160.8 143.7 160.6 181.6 200.6 221.9 2.0 9.2 31.7 46.9 60.4 856.3 921.9 1,019.1 1,039.4 1,055.0 0.17% 0.17% 0.16% 0.15% 0.12% -0.70% -0.60% -0.50% -0.40% -0.30% -0.20% -0.10% 0.00% 0.10% 18/3 19/3 20/3 21/3 22/3 Investment Business Loans Installment Sales Operating Leases Finance Leases Default Rate
• Financial expenses increased slightly while financial expenses ratio remained flat.  Financial Expenses and Financial Expenses Ratio  Total Procurement Amount Total Procurement Amount and Financial Expenses 9 (Billion yen) (Billion yen) * Financial expenses ratio = Financial expenses / Average balance of operating assets 111.0 96.2 67.2 30.2 18.2 95.7 134.4 143.8 195.2 147.5 499.9 524.4 608.4 590.0 647.5 20.0 20.0 60.0 100.0 100.0 726.6 775.2 879.5 915.4 913.2 18/3 19/3 20/3 21/3 22/3 Payables under securitization of lesase receivables Long-term Debt Long-term Debt within one year Short-term Debt 1.08 1.02 1.12 1.36 1.37 0.13% 0.12% 0.12% 0.14% 0.14% -0.50% -0.30% -0.10% 0.10% 0.30% 18/3 19/3 20/3 21/3 22/3 Financial Expenses Financial Expenses Ratio • ESG financing was conducted through positive impact finance (PIF) in 21/3 and sustainability linked loans (SLL) in 22/3. * 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 * SLL: Loans in which targeted matching ESG strategies are set and incentives are generated in accordance with the degree of achievement of the targets
2．Performance by Segment 10
 Operating Assets 11 Performance by Segment • Sales in the Leases & Finance Business decreased mainly given a decline in installment sales, but profit increased, reflecting an improvement in earnings strength. • In the Services Business, Collection Agency Service continued to perform strongly. Starting from the first quarter of the fiscal year under review, Enplus results are reflected in consolidated results. • Both sales and profit increased in the Investment Business, driven by solar power generation business with stable revenue from sales of electricity.  Net sales and profit (Billion Yen) (Billion Yen) * The balance of operating assets includes the amount of the securitizations of lease receivables 2021/3 4Q cumulative total 4Q cumulative total Growth Rate Net Sales 318.1 293.2 (7.8%) Segment Profit 16.8 18.7 11.5% Net Sales 5.5 6.5 18.9% Segment Profit 1.5 1.3 (10.6%) Net Sales 2.5 4.0 57.4% Segment Profit 0.6 0.8 31.9% Investment Business Services Business 2022/3 Leases & Finance Business 2021/3 Actual Actual Increase/ Decrease 992.5 994.5 2.0 46.9 60.4 13.5 2022/3 Leases & Finance Business Investment Business
 Leases and Installment Sales Transaction Volume by Product  Transaction Volume by Contract • The transaction volume of lease and installment sales decreased, mainly due to the impact of the shortage of semiconductors. Yields on new contracts continued to improve. • Loans grew, mainly in condominium loans and structured loans, exceeding the pre-COVID-19 pandemic level. 12 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 transaction volume of the above. 2021/3 4Q cumulative total 4Q cumulative total Growth Rate 　Finance Leases 235.2 229.1 (2.6%) 　Operating Leases 17.4 19.4 11.7% Total Leases 252.6 248.6 (1.6%) Installment Sales 78.5 62.6 (20.3%) 331.2 311.2 (6.0%) Loans Transaction Volume 48.4 56.5 16.8% 379.6 367.7 (3.1%) Total Transaction Volume for Leases and Installment Total Transaction Volume for Leases & Finance Business 2022/3 2021/3 4Q cumulative total 4Q cumulative total Growth Rate Office and IT-Related Equipment 165.5 152.2 (8.0%) (7.7%) Medical Equipment 31.4 34.8 10.6% (0.9%) Industrial Machinery 33.3 34.8 4.6% (14.5%) Commercial and Service Equipment 18.2 15.8 (13.1%) (7.0%) Transport Equipment 21.7 22.5 3.5% (1.0%) Others 60.8 50.9 (16.3%) (15.3%) 331.2 311.2 (6.0%) (8.1%) Environmental Field 52.1 36.1 (30.7%) Total Transaction Volume for Leases and Installment Sales 2022/3 Japan Leasing Association (cumulative total from 21/4 to 22/3) Growth Rate
 Transaction Volume of Factoring Services for Healthcare & Nursing-Care Facilities  Number of Transactions in Collection Agency Services Actual Results of Services Business 13 (Billion yen) （million cases） • The number of new contracts increased in Collection Agency Services due to the high level of interest in account-to-account transfer services reflecting the need for no-contact communication. • In Factoring Service for Healthcare & Nursing-care Facilities, the volume of transactions declined, reflecting applications for termination chiefly due to enhanced public support. 18.19 20.07 22.19 23.59 26.14 18/3 19/3 20/3 21/3 22/3 78.2 72.0 78.1 100.6 97.5 6.7 7.9 11.1 7.5 6.6 -15 5 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 18/3 19/3 20/3 21/3 22/3 Transaction Volume Balance
14 Actual Results of Investment Business • Operating assets in the environmental field accumulated through business investments and equity investments in secondary deals, self-consumption models, etc. • Regarding Housing rental and Real estate business, we developed the real estate business, selecting assets and investment conditions carefully and diversifying financing method.  Investment Amount (Billion yen)  Operating Assets (Billion yen) 2021/3 4Q cumulative total 4Q cumulative total Growth Rate Solar Power Generation Business 6.5 9.0 37.4% Housing Rental and Real Estate Business 9.8 18.8 91.9% Total Investment Amount 16.4 27.9 70.1% 2022/3 2021/3 Actual Actual Increase/ Decrease Solar Power Generation Business 16.6 19.0 2.4 Housing Rental and Real Estate Business 30.2 41.4 11.1 Total Operating Assets of Investment Business 46.9 60.4 13.5 2022/3
15 3． Mid-Term Management Plan and Topics (FY2020 - FY2022) *Please refer to the reference materials for the strategy of the Mid-Term Management Plan.
Topic 1:Vendor Finance Initiatives Business Growth Strategy① Further evolution of vendor leasing and enhancement of value provided to customers 16 Developing Ricoh Lease packages and providing new customer value Web-based credit scoring system Lease agreement output system • Inside sales support to vendors Inside sales Field sales  Inside sales answer inquires from vendors promptly  Provide high quality, high efficiency sales support functions Negotiations Sales support Providing solutions  Launched NC Pay-Per, a pay-per-use operating lease arrangement. The lease payment is determined according to the number of cases at a medical institution  Propose self-consumption solar power generation facilities to local companies and contribute to achieving a decarbonized society • Developing products that solve customers' issues  Continuing evolution of vendor leasing  Enhancement of the value provided to customers A system for applying for credit on a website. The system uses AI technology, etc. to make decisions and respond to applications promptly Vendors Customers The system works with the Web-based credit scoring system and outputs agreements from a website Promoting use of vendor support tools that help vendors sell products • Developing Ricoh Lease packages Providing finance to a large number of customers through vendors; building a customer base of 400,000 companies • Breakdown of transaction volume by channel Users 29% Vendors 71% Transaction volume for leases and installment sales 311.2 billion yen 2022/3
Business Growth Strategy④ Pioneering new business areas and creating business models Topic 2:Trust Beneficial Interests 17 Developing new areas by holding trust beneficial interests for short terms The right to entrust real estate and receive distributions of profits from the assets, including rent income Ricoh Leasing Real estate owners REIT Trust banks • Expand building lease transactions and equipment lease transactions with tenants of properties that we own for short terms • Introducing solar power generation facilities to properties and proposing added value, including ZEB What is a trust beneficial interest? Summary of our efforts Purpose We own trust beneficiary rights of a real estate property developed by a developer for a short term until the property is owned by a REIT We liquidate real estate and offer financing to the developer and owner and thereby contribute to a sustainable economic virtuous circle Trust agreement Trust dividends Sale and purchase of trust beneficial interests  Trends in business investments  Scheme  Aims ZEB: Net Zero Energy Buildings, which produce as much primary energy as they consume over the course of a year (Billion yen) Sale and purchase of trust beneficial interests 0.0 5.4 0.5 9.2 19/3 20/3 21/3 22/3 23/3
Business Growth Strategy⑥ Business expansion not dependent on assets Topic 3:Cooperation with an Investee Company 18 Providing settlement services under a business alliance with Net Protections Investment objective Invested in Net Protections Holdings, Inc. in 2019 to expand settlement services by creating and developing services jointly with Net Protections, Inc. Company name: Net Protections, Inc. Established: January 2000 Business description: Providing NP Atobarai, a settlement service for BtoC transactions, and NP Kakebarai, a settlement service for BtoB transactions Shareholder: Net Protections Holdings, Inc. (Listed on the First Section of the Tokyo Stock Exchange in December 2021) Outline of the service Buyer Order placement Order acceptance Credit granting Product shipping Receipt of product Invoicing Third party payment Deposit management Payment, Receipt Payment, Receipt Deposit guarantee Ricoh Leasing Usually 40 days 10 days minimum Seller (member company) Demand • Net Protections has started to provide NP Kakebarai that shortens the period until receipt, usually 40 days, to 10 days minimum under an alliance with the Company. • The seller can avoid debt collection risk and make financing plans more easily. Net Protections
Increasing investment in human resources and strengthening corporate governance Reinforcement of existing businesses and creation of new business opportunities Topic 4:Initiatives with Mizuho Leasing, and Human Resources and Governance Initiatives 19 Strategy for Enhancement of Organizational Strength②③ Human resource management that links the employees’ happiness with the Company’s business expansion Reinforcement of governance Business Growth Strategy⑦ Business expansion under alliance with Mizuho Leasing FY2021 initiatives Collaboration between companies 10.2 billion yen 10.0 billion yen FY2021 (Target) FY2021 (Actual) • Carrying out fixed-point observations of the engagement of all employees and continuing to make improvements using the PDCA cycle based on analysis of the results of observations • Selected under the 2022 Health & Productivity Stock Selection(for the fifth consecutive year) • Certified as a 2022 Certified Health & Productivity Management Outstanding Organization (for the sixth consecutive year) • Listed on the Prime Market on April 4, 2022 • Expansion of collaboration areas including cooperative approaches • Disclosing compliance with all 83 principles of the Corporate Governance Code • Percentage of female managers: 20.7％ • Percentage of female officers: 23.1％ • Percentage of independent officers: 53.8％ • Selected as a Semi-Nadeshiko Brand  Continued vendor referrals from Mizuho Leasing to Ricoh Leasing  Started to provide credit criteria to Mizuho Leasing to support sales by manufacturers and other customers of Mizuho Leasing  Continued to consider collaboration, including project referrals in the environment and energy, healthcare, and automobile areas  Personnel management  Reinforcement of governance Engagement Health & Productivity Stock Selection Diversity Status of major initiatives New market segment (Note) The figures are as of April 1, 2022.
20 4．Consolidated Income Forecast for Fiscal Year Ending March 2023
• Sales expected to increase for the first time in three years, reflecting growth in the Investment Business and Services Business, and each profit figure forecast to hit a record high. Consolidated Income Forecast 21 (Billion yen) Full-year Actual Growth Rate Full-year Forecast Growh Rate Net Sales 303.8 (6.9%) 306.0 0.7% Gross Profit 40.0 6.2% 41.5 3.6% 20.7 2.6% 21.5 3.6% Operating Profit 19.2 10.4% 20.0 3.7% Ordinary Profit 19.5 11.5% 19.6 0.4% Net Income 13.4 12.2% 13.5 0.1% YoY change YoY change Dividend per Share(yen) 120.00 20.00 135.00 15.00 Earnings per Share(yen) 437.34 47.41 437.96 0.61 Dividend Payout Ratio 27.4% 1.8% 30.8% 3.4% 1.15% 0.11% 1.12% (0.03%) 6.9% 0.4% 6.5% (0.3%) ROE（Return on Equity Ratio） 2022/3 2023/3 Selling, General and Administrative Expenses ROA（Return on Asset Ratio）
• Gross profit is forecast to rise in all segments. • Investment and expenses for business activities for strengthening the business foundation (human resources, IT infrastructure) are forecast to increase. The provision of allowance for doubtful accounts will decrease. Gross Profit Selling, General and Administrative Expenses 22 19.28 billion yen ＋0.59 20.00 billion yen ＋1.11 (0.71) (0.54) Forecast on Factors Affecting Operating Profit 22/3 4Q Cumulative Total 23/3 Full-Year Forecast 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 ＋0.02 ＋0.41 ＋0.55 (0.13) (0.60) Other expenses Strategic Expenses Human Resources Financial Expenses (Billion Yen) Provision of allowance for Doubtful Accounts
• Operating assets forecast to rise 40.9 billion yen due to rises in transaction volume and business investment amount. 23 Breakdown of Operating Assets — Forecast * The balance of operating assets includes the amount of the securitizations of lease receivables (Billion yen) Actual Increase/ Decrease Forecast Increase/ Decrease Finance Leases 582.2 (17.4) 591.0 8.7 Operating Leases 29.5 (0.9) 30.0 0.4 Total Leases 611.7 (18.3) 621.0 9.2 Installment Sales 160.8 (0.8) 163.0 2.1 772.5 (19.2) 784.0 11.4 Loans 221.9 21.2 232.0 10.0 Leases ＆　Finance Business 994.5 2.0 1,016.0 21.4 Investment Business 60.4 13.5 80.0 19.5 Total Operating Assets 1,055.0 15.5 1,096.0 40.9 2022/3 2023/3 Total Transaction Volume for Leases and Installment Sales
• Mid-term Management Plan targets, except ROE and operating assets targets, expected to be achieved Progress in Mid-Term Management Plan 24 (Billion yen) 2020/3 2021/3 2022/3 Actual Actual Actual Forecast Forecast CAGR 20/3-23/3 Deviation from the Mid-term target Mid-Term Target Mid-term target CAGR 20/3-23/3 Operating Profit 17.0 17.4 19.2 20.0 5.5% 0.0 20.0 5.5% ROE （Return on Equity Ratio） 6.6% 6.4% 6.9% 6.5% ー (0.2%) 6.7% or more ー Operating Assets （including securitization of receivables） 1,019.1 1,039.4 1,055.0 1,096.0 2.5% (104.0) 1,200.0 5.6% Dividend Payout Ratio 23.5% 25.6% 27.4% 30.8% ー 0.8% 30.0% ー ー 1.1% or more ー 0.02% 2023/3 ROA （Return on Asset Ratio） 1.08% 1.04% 1.15% 1.12%
Policy for Shareholder Return 25 • During the period of the FY2020-FY2022 Mid-term Management Plan, dividend per share expected to rise 45 yen, the 28th consecutive year of increase. * Consecutive dividend increases include the substantial dividend increase due to the stock split in Fiscal Year Ended March 2000. 135 41 43 45 50 55 60 70 80 90 100 120 13.6% 13.1% 14.7% 15.4% 15.5% 15.9% 19.3% 20.9% 23.5% 25.6% 27.4% 30.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 20 40 60 80 100 120 140 160 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 Forecast Initial Forecast Actual Dividend Payout Ratio (Yen)
5． Reference Material 26
Consolidated Statements of Income 27 (Billion yen) 4Q cumulative total Growth Rate 4Q cumulative total Growth Rate Full-year Forecast Growth Rate Net Sales 326.2 (1.8%) 303.8 (6.9%) 306.0 0.7% Leases 234.7 (1.5%) 225.9 (3.8%) 224.8 (0.5%) Installment Sales 44.2 (13.4%) 31.9 (27.8%) 32.6 1.9% Loans 3.6 12.4% 4.1 12.4% 4.4 6.0% Commission Received 6.3 2.8% 7.3 16.3% 8.2 11.8% Others 37.2 11.8% 34.4 (7.5%) 36.0 4.4% Cost of Sales 288.5 (2.9%) 263.8 (8.6%) 264.5 0.3% Leases 210.8 (2.1%) 201.6 (4.4%) - - Installment Sales 41.0 (14.5%) 28.6 (30.1%) - - Financial Expenses 1.3 21.5% 1.3 0.3% - - Others 35.2 8.5% 32.1 (8.8%) - - Gross Profit 37.7 7.2% 40.0 6.2% 41.5 3.6% 20.2 11.4% 20.7 2.6% 21.5 3.6% Operating Profit 17.4 2.7% 19.2 10.4% 20.0 3.7% Ordinary Profit 17.5 2.5% 19.5 11.5% 19.6 0.4% Net Income 12.0 1.6% 13.4 12.2% 13.5 0.1% 2021/3 2022/3 2023/3 Selling, General and Administrative Expenses
Mid-term Management Plan 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 Continuous value creation Realization of management centered on individuals S G E • 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 Leases Installment Sales 28
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 circulation Creation of safe, secure and pleasant housing and living environments Further evolution of vendor leasing and enhancement of value provided to customers Reconstruction of the rental business Contributing to reasonable environmental circulation and restoration Contributing 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 models Business 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 Plan Scheme to Realize the Target Vision 29
FY2020 – FY2022 Mid-term Management Plan Business 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 30
FY2020 – FY2022 Mid-term Management Plan Business 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 31
FY2020 – FY2022 Mid-term Management Plan Strategy for Enhancement of Organizational Strength 32 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
33 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. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. <Contact> Corporate Planning Department Tel : 050-1702-4203 Email : ir@rle.ricoh.co.jp URL : https://www.r-lease.co.jp Ricoh Leasing Company, Ltd.

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Financial_Highlights_FY20214Q.pdf

  • 1.
    May 10, 2022 RicohLeasing Company, Ltd. Fiscal Year Ended March 2022 (FY2021) Financial Highlights
  • 2.
    1. Consolidated Resultsfor Fiscal Year Ended March 2022 2. Performance by Segment 3. Mid-Term Management Plan and Topics (FY2020 - FY2022) 4. Consolidated Income Forecast for Fiscal Year Ending March 2023 5. Reference Material Table of Contents 2
  • 3.
    1. Consolidated Resultsfor Fiscal Year Ended March 2022 3
  • 4.
    * Operating assetswithout deducting the securitization of lease receivables were 1,055.0 billion yen (increased 15.5 billion yen from the end of the previous fiscal year). 4 Financial Performance Overview for Fiscal Year Ended March 2022 * In this document, “Profit Attributable to Owners of Parent” is listed as “Net Income.” 1. Net sales decreased and profit increased. Each profit figure achieved the target and hit a record high, reflecting the continued improvement of returns on assets and growth in the Rental Business. 2. Operating assets stood at 984.2 billion yen（increased 15.5 billion yen from the end of the previous fiscal year）. Operating assets increased in Loans and Investment Business. 3. Operating profit for the fiscal year ending March 2023 is forecast to be 20.0 billion yen. Operating profit is forecast to rise for the third consecutive year and achieve the Mid-term Management Plan target.
  • 5.
    • An increasein selling, general and administrative expenses was more than offset by gross profit, and operating profit and profits in lines below it hit record highs for the second consecutive year. • We will raise annual dividends per share to 120 yen, up from 115 yen, the full-year forecast (a rise of 20 yen year on year). Consolidated Results 5 (Billion Yen) 2021/3 2022/3 4Q cumulative total 4Q cumulative total Growth Rate Full-year Forecast 326.2 303.8 (6.9%) 312.4 97.3% 37.7 40.0 6.2% 40.0 100.1% 20.2 20.7 2.6% 21.5 96.6% 17.4 19.2 10.4% 18.5 104.2% 17.5 19.5 11.5% 18.3 106.7% 12.0 13.4 12.2% 12.6 107.0% YoY change 100.00 120.00 20.00 115.00 － 389.93 437.34 47.41 408.76 － 25.6% 27.4% 1.8% 28.1% － 1.04% 1.15% 0.11% 1.05% － 6.4% 6.9% 0.4% 6.4% － 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 2022/3 Achievement Rate Net Sales Gross Profit
  • 6.
    Provision of allowance for Doubtful Accounts Other Expenses 21/3 4Q cumulativetotal (Billion Yen) Factors Affecting Operating Profit 6 Gross Profit 17.47 billion yen 19.28 billion yen +0.41 +0.41 +1.18 +0.33 +1.13 Selling, General and Administrative Expenses 22/3 4Q cumulative total (0.00) (0.83) (0.82) Human Resources Financial Expenses Gross Margin for Investment Business Gross Margin for Services Business Gross Margin for Loans Gross Margin for Leases and Installment Sales Business Leases & Finance Business
  • 7.
    • Assets andliabilities increased from a year ago, reflecting an increase in operating assets. Consolidated Balance Sheets 7 * Allowance for doubtful accounts shows the total of current assets and non-current assets. * Long-term debt within one year(Bonds payable, Long-term borrowings) is included in short-term Interest-Bearing Debt. (Billion Yen) 2021/3 2021/3 Actual Actual Increase/ Decrease Actual Actual Increase/ Decrease Cash and deposits 11.0 4.8 (6.2) Short-term Interest-Bearing Debt 225.4 165.7 (59.6) Lease receivables and investments in leases 528.9 511.4 (17.4) Long-term Interest-Bearing Debt 590.0 647.5 57.5 Installment receivables 182.9 183.7 0.8 Long-term payables under securitization of lease receivables 40.0 40.0 - Accounts receivable - operating loans 200.6 221.9 21.2 Other liabilities 113.9 122.9 9.0 Assets for lease 54.3 61.8 7.4 Total Liabilities 969.3 976.2 6.8 Allowance for doubtful accounts (11.8) (13.2) (1.3) Total net assets 191.3 201.4 10.1 Other assets 194.7 207.0 12.3 Total assets 1,160.7 1,177.7 17.0 Total liabilities and net assets 1,160.7 1,177.7 17.0 2022/3 2022/3
  • 8.
    • Operating assetsincreased 15.5 billion yen from the end of the previous year due to the accumulation of Loans and Investment Business. • Default loss amount decreased, and the default rate remained at a low level. Operating Assets and Default Rate 8 * The balance of operating assets includes the amount of securitization of lease receivables (Amount of Securitized Lease Receivables for 22/3: 70.7 billion yen). * Default rate = Default loss amount / Average balance of operating assets (Billion yen) 576.1 589.8 622.1 599.7 582.2 23.0 29.0 30.5 30.4 29.5 111.3 133.1 152.9 161.6 160.8 143.7 160.6 181.6 200.6 221.9 2.0 9.2 31.7 46.9 60.4 856.3 921.9 1,019.1 1,039.4 1,055.0 0.17% 0.17% 0.16% 0.15% 0.12% -0.70% -0.60% -0.50% -0.40% -0.30% -0.20% -0.10% 0.00% 0.10% 18/3 19/3 20/3 21/3 22/3 Investment Business Loans Installment Sales Operating Leases Finance Leases Default Rate
  • 9.
    • Financial expensesincreased slightly while financial expenses ratio remained flat.  Financial Expenses and Financial Expenses Ratio  Total Procurement Amount Total Procurement Amount and Financial Expenses 9 (Billion yen) (Billion yen) * Financial expenses ratio = Financial expenses / Average balance of operating assets 111.0 96.2 67.2 30.2 18.2 95.7 134.4 143.8 195.2 147.5 499.9 524.4 608.4 590.0 647.5 20.0 20.0 60.0 100.0 100.0 726.6 775.2 879.5 915.4 913.2 18/3 19/3 20/3 21/3 22/3 Payables under securitization of lesase receivables Long-term Debt Long-term Debt within one year Short-term Debt 1.08 1.02 1.12 1.36 1.37 0.13% 0.12% 0.12% 0.14% 0.14% -0.50% -0.30% -0.10% 0.10% 0.30% 18/3 19/3 20/3 21/3 22/3 Financial Expenses Financial Expenses Ratio • ESG financing was conducted through positive impact finance (PIF) in 21/3 and sustainability linked loans (SLL) in 22/3. * 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 * SLL: Loans in which targeted matching ESG strategies are set and incentives are generated in accordance with the degree of achievement of the targets
  • 10.
  • 11.
     Operating Assets 11 Performanceby Segment • Sales in the Leases & Finance Business decreased mainly given a decline in installment sales, but profit increased, reflecting an improvement in earnings strength. • In the Services Business, Collection Agency Service continued to perform strongly. Starting from the first quarter of the fiscal year under review, Enplus results are reflected in consolidated results. • Both sales and profit increased in the Investment Business, driven by solar power generation business with stable revenue from sales of electricity.  Net sales and profit (Billion Yen) (Billion Yen) * The balance of operating assets includes the amount of the securitizations of lease receivables 2021/3 4Q cumulative total 4Q cumulative total Growth Rate Net Sales 318.1 293.2 (7.8%) Segment Profit 16.8 18.7 11.5% Net Sales 5.5 6.5 18.9% Segment Profit 1.5 1.3 (10.6%) Net Sales 2.5 4.0 57.4% Segment Profit 0.6 0.8 31.9% Investment Business Services Business 2022/3 Leases & Finance Business 2021/3 Actual Actual Increase/ Decrease 992.5 994.5 2.0 46.9 60.4 13.5 2022/3 Leases & Finance Business Investment Business
  • 12.
     Leases andInstallment Sales Transaction Volume by Product  Transaction Volume by Contract • The transaction volume of lease and installment sales decreased, mainly due to the impact of the shortage of semiconductors. Yields on new contracts continued to improve. • Loans grew, mainly in condominium loans and structured loans, exceeding the pre-COVID-19 pandemic level. 12 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 transaction volume of the above. 2021/3 4Q cumulative total 4Q cumulative total Growth Rate 　Finance Leases 235.2 229.1 (2.6%) 　Operating Leases 17.4 19.4 11.7% Total Leases 252.6 248.6 (1.6%) Installment Sales 78.5 62.6 (20.3%) 331.2 311.2 (6.0%) Loans Transaction Volume 48.4 56.5 16.8% 379.6 367.7 (3.1%) Total Transaction Volume for Leases and Installment Total Transaction Volume for Leases & Finance Business 2022/3 2021/3 4Q cumulative total 4Q cumulative total Growth Rate Office and IT-Related Equipment 165.5 152.2 (8.0%) (7.7%) Medical Equipment 31.4 34.8 10.6% (0.9%) Industrial Machinery 33.3 34.8 4.6% (14.5%) Commercial and Service Equipment 18.2 15.8 (13.1%) (7.0%) Transport Equipment 21.7 22.5 3.5% (1.0%) Others 60.8 50.9 (16.3%) (15.3%) 331.2 311.2 (6.0%) (8.1%) Environmental Field 52.1 36.1 (30.7%) Total Transaction Volume for Leases and Installment Sales 2022/3 Japan Leasing Association (cumulative total from 21/4 to 22/3) Growth Rate
  • 13.
     Transaction Volumeof Factoring Services for Healthcare & Nursing-Care Facilities  Number of Transactions in Collection Agency Services Actual Results of Services Business 13 (Billion yen) （million cases） • The number of new contracts increased in Collection Agency Services due to the high level of interest in account-to-account transfer services reflecting the need for no-contact communication. • In Factoring Service for Healthcare & Nursing-care Facilities, the volume of transactions declined, reflecting applications for termination chiefly due to enhanced public support. 18.19 20.07 22.19 23.59 26.14 18/3 19/3 20/3 21/3 22/3 78.2 72.0 78.1 100.6 97.5 6.7 7.9 11.1 7.5 6.6 -15 5 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 18/3 19/3 20/3 21/3 22/3 Transaction Volume Balance
  • 14.
    14 Actual Results ofInvestment Business • Operating assets in the environmental field accumulated through business investments and equity investments in secondary deals, self-consumption models, etc. • Regarding Housing rental and Real estate business, we developed the real estate business, selecting assets and investment conditions carefully and diversifying financing method.  Investment Amount (Billion yen)  Operating Assets (Billion yen) 2021/3 4Q cumulative total 4Q cumulative total Growth Rate Solar Power Generation Business 6.5 9.0 37.4% Housing Rental and Real Estate Business 9.8 18.8 91.9% Total Investment Amount 16.4 27.9 70.1% 2022/3 2021/3 Actual Actual Increase/ Decrease Solar Power Generation Business 16.6 19.0 2.4 Housing Rental and Real Estate Business 30.2 41.4 11.1 Total Operating Assets of Investment Business 46.9 60.4 13.5 2022/3
  • 15.
    15 3． Mid-Term ManagementPlan and Topics (FY2020 - FY2022) *Please refer to the reference materials for the strategy of the Mid-Term Management Plan.
  • 16.
    Topic 1:Vendor FinanceInitiatives Business Growth Strategy① Further evolution of vendor leasing and enhancement of value provided to customers 16 Developing Ricoh Lease packages and providing new customer value Web-based credit scoring system Lease agreement output system • Inside sales support to vendors Inside sales Field sales  Inside sales answer inquires from vendors promptly  Provide high quality, high efficiency sales support functions Negotiations Sales support Providing solutions  Launched NC Pay-Per, a pay-per-use operating lease arrangement. The lease payment is determined according to the number of cases at a medical institution  Propose self-consumption solar power generation facilities to local companies and contribute to achieving a decarbonized society • Developing products that solve customers' issues  Continuing evolution of vendor leasing  Enhancement of the value provided to customers A system for applying for credit on a website. The system uses AI technology, etc. to make decisions and respond to applications promptly Vendors Customers The system works with the Web-based credit scoring system and outputs agreements from a website Promoting use of vendor support tools that help vendors sell products • Developing Ricoh Lease packages Providing finance to a large number of customers through vendors; building a customer base of 400,000 companies • Breakdown of transaction volume by channel Users 29% Vendors 71% Transaction volume for leases and installment sales 311.2 billion yen 2022/3
  • 17.
    Business Growth Strategy④ Pioneeringnew business areas and creating business models Topic 2:Trust Beneficial Interests 17 Developing new areas by holding trust beneficial interests for short terms The right to entrust real estate and receive distributions of profits from the assets, including rent income Ricoh Leasing Real estate owners REIT Trust banks • Expand building lease transactions and equipment lease transactions with tenants of properties that we own for short terms • Introducing solar power generation facilities to properties and proposing added value, including ZEB What is a trust beneficial interest? Summary of our efforts Purpose We own trust beneficiary rights of a real estate property developed by a developer for a short term until the property is owned by a REIT We liquidate real estate and offer financing to the developer and owner and thereby contribute to a sustainable economic virtuous circle Trust agreement Trust dividends Sale and purchase of trust beneficial interests  Trends in business investments  Scheme  Aims ZEB: Net Zero Energy Buildings, which produce as much primary energy as they consume over the course of a year (Billion yen) Sale and purchase of trust beneficial interests 0.0 5.4 0.5 9.2 19/3 20/3 21/3 22/3 23/3
  • 18.
    Business Growth Strategy⑥ Businessexpansion not dependent on assets Topic 3:Cooperation with an Investee Company 18 Providing settlement services under a business alliance with Net Protections Investment objective Invested in Net Protections Holdings, Inc. in 2019 to expand settlement services by creating and developing services jointly with Net Protections, Inc. Company name: Net Protections, Inc. Established: January 2000 Business description: Providing NP Atobarai, a settlement service for BtoC transactions, and NP Kakebarai, a settlement service for BtoB transactions Shareholder: Net Protections Holdings, Inc. (Listed on the First Section of the Tokyo Stock Exchange in December 2021) Outline of the service Buyer Order placement Order acceptance Credit granting Product shipping Receipt of product Invoicing Third party payment Deposit management Payment, Receipt Payment, Receipt Deposit guarantee Ricoh Leasing Usually 40 days 10 days minimum Seller (member company) Demand • Net Protections has started to provide NP Kakebarai that shortens the period until receipt, usually 40 days, to 10 days minimum under an alliance with the Company. • The seller can avoid debt collection risk and make financing plans more easily. Net Protections
  • 19.
    Increasing investment inhuman resources and strengthening corporate governance Reinforcement of existing businesses and creation of new business opportunities Topic 4:Initiatives with Mizuho Leasing, and Human Resources and Governance Initiatives 19 Strategy for Enhancement of Organizational Strength②③ Human resource management that links the employees’ happiness with the Company’s business expansion Reinforcement of governance Business Growth Strategy⑦ Business expansion under alliance with Mizuho Leasing FY2021 initiatives Collaboration between companies 10.2 billion yen 10.0 billion yen FY2021 (Target) FY2021 (Actual) • Carrying out fixed-point observations of the engagement of all employees and continuing to make improvements using the PDCA cycle based on analysis of the results of observations • Selected under the 2022 Health & Productivity Stock Selection(for the fifth consecutive year) • Certified as a 2022 Certified Health & Productivity Management Outstanding Organization (for the sixth consecutive year) • Listed on the Prime Market on April 4, 2022 • Expansion of collaboration areas including cooperative approaches • Disclosing compliance with all 83 principles of the Corporate Governance Code • Percentage of female managers: 20.7％ • Percentage of female officers: 23.1％ • Percentage of independent officers: 53.8％ • Selected as a Semi-Nadeshiko Brand  Continued vendor referrals from Mizuho Leasing to Ricoh Leasing  Started to provide credit criteria to Mizuho Leasing to support sales by manufacturers and other customers of Mizuho Leasing  Continued to consider collaboration, including project referrals in the environment and energy, healthcare, and automobile areas  Personnel management  Reinforcement of governance Engagement Health & Productivity Stock Selection Diversity Status of major initiatives New market segment (Note) The figures are as of April 1, 2022.
  • 20.
    20 4．Consolidated Income Forecastfor Fiscal Year Ending March 2023
  • 21.
    • Sales expectedto increase for the first time in three years, reflecting growth in the Investment Business and Services Business, and each profit figure forecast to hit a record high. Consolidated Income Forecast 21 (Billion yen) Full-year Actual Growth Rate Full-year Forecast Growh Rate Net Sales 303.8 (6.9%) 306.0 0.7% Gross Profit 40.0 6.2% 41.5 3.6% 20.7 2.6% 21.5 3.6% Operating Profit 19.2 10.4% 20.0 3.7% Ordinary Profit 19.5 11.5% 19.6 0.4% Net Income 13.4 12.2% 13.5 0.1% YoY change YoY change Dividend per Share(yen) 120.00 20.00 135.00 15.00 Earnings per Share(yen) 437.34 47.41 437.96 0.61 Dividend Payout Ratio 27.4% 1.8% 30.8% 3.4% 1.15% 0.11% 1.12% (0.03%) 6.9% 0.4% 6.5% (0.3%) ROE（Return on Equity Ratio） 2022/3 2023/3 Selling, General and Administrative Expenses ROA（Return on Asset Ratio）
  • 22.
    • Gross profitis forecast to rise in all segments. • Investment and expenses for business activities for strengthening the business foundation (human resources, IT infrastructure) are forecast to increase. The provision of allowance for doubtful accounts will decrease. Gross Profit Selling, General and Administrative Expenses 22 19.28 billion yen ＋0.59 20.00 billion yen ＋1.11 (0.71) (0.54) Forecast on Factors Affecting Operating Profit 22/3 4Q Cumulative Total 23/3 Full-Year Forecast 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 ＋0.02 ＋0.41 ＋0.55 (0.13) (0.60) Other expenses Strategic Expenses Human Resources Financial Expenses (Billion Yen) Provision of allowance for Doubtful Accounts
  • 23.
    • Operating assetsforecast to rise 40.9 billion yen due to rises in transaction volume and business investment amount. 23 Breakdown of Operating Assets — Forecast * The balance of operating assets includes the amount of the securitizations of lease receivables (Billion yen) Actual Increase/ Decrease Forecast Increase/ Decrease Finance Leases 582.2 (17.4) 591.0 8.7 Operating Leases 29.5 (0.9) 30.0 0.4 Total Leases 611.7 (18.3) 621.0 9.2 Installment Sales 160.8 (0.8) 163.0 2.1 772.5 (19.2) 784.0 11.4 Loans 221.9 21.2 232.0 10.0 Leases ＆　Finance Business 994.5 2.0 1,016.0 21.4 Investment Business 60.4 13.5 80.0 19.5 Total Operating Assets 1,055.0 15.5 1,096.0 40.9 2022/3 2023/3 Total Transaction Volume for Leases and Installment Sales
  • 24.
    • Mid-term ManagementPlan targets, except ROE and operating assets targets, expected to be achieved Progress in Mid-Term Management Plan 24 (Billion yen) 2020/3 2021/3 2022/3 Actual Actual Actual Forecast Forecast CAGR 20/3-23/3 Deviation from the Mid-term target Mid-Term Target Mid-term target CAGR 20/3-23/3 Operating Profit 17.0 17.4 19.2 20.0 5.5% 0.0 20.0 5.5% ROE （Return on Equity Ratio） 6.6% 6.4% 6.9% 6.5% ー (0.2%) 6.7% or more ー Operating Assets （including securitization of receivables） 1,019.1 1,039.4 1,055.0 1,096.0 2.5% (104.0) 1,200.0 5.6% Dividend Payout Ratio 23.5% 25.6% 27.4% 30.8% ー 0.8% 30.0% ー ー 1.1% or more ー 0.02% 2023/3 ROA （Return on Asset Ratio） 1.08% 1.04% 1.15% 1.12%
  • 25.
    Policy for ShareholderReturn 25 • During the period of the FY2020-FY2022 Mid-term Management Plan, dividend per share expected to rise 45 yen, the 28th consecutive year of increase. * Consecutive dividend increases include the substantial dividend increase due to the stock split in Fiscal Year Ended March 2000. 135 41 43 45 50 55 60 70 80 90 100 120 13.6% 13.1% 14.7% 15.4% 15.5% 15.9% 19.3% 20.9% 23.5% 25.6% 27.4% 30.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 20 40 60 80 100 120 140 160 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 Forecast Initial Forecast Actual Dividend Payout Ratio (Yen)
  • 26.
  • 27.
    Consolidated Statements ofIncome 27 (Billion yen) 4Q cumulative total Growth Rate 4Q cumulative total Growth Rate Full-year Forecast Growth Rate Net Sales 326.2 (1.8%) 303.8 (6.9%) 306.0 0.7% Leases 234.7 (1.5%) 225.9 (3.8%) 224.8 (0.5%) Installment Sales 44.2 (13.4%) 31.9 (27.8%) 32.6 1.9% Loans 3.6 12.4% 4.1 12.4% 4.4 6.0% Commission Received 6.3 2.8% 7.3 16.3% 8.2 11.8% Others 37.2 11.8% 34.4 (7.5%) 36.0 4.4% Cost of Sales 288.5 (2.9%) 263.8 (8.6%) 264.5 0.3% Leases 210.8 (2.1%) 201.6 (4.4%) - - Installment Sales 41.0 (14.5%) 28.6 (30.1%) - - Financial Expenses 1.3 21.5% 1.3 0.3% - - Others 35.2 8.5% 32.1 (8.8%) - - Gross Profit 37.7 7.2% 40.0 6.2% 41.5 3.6% 20.2 11.4% 20.7 2.6% 21.5 3.6% Operating Profit 17.4 2.7% 19.2 10.4% 20.0 3.7% Ordinary Profit 17.5 2.5% 19.5 11.5% 19.6 0.4% Net Income 12.0 1.6% 13.4 12.2% 13.5 0.1% 2021/3 2022/3 2023/3 Selling, General and Administrative Expenses
  • 28.
    Mid-term Management Plan TargetVision 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 Continuous value creation Realization of management centered on individuals S G E • 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 Leases Installment Sales 28
  • 29.
    Enhance- ment of organiza- tional strength Business growth Mid- term Manage- ment Plan Business domains Promotionof Sustainability Management Contributing to realizing a clean global environment rooted in environmental circulation Creation of safe, secure and pleasant housing and living environments Further evolution of vendor leasing and enhancement of value provided to customers Reconstruction of the rental business Contributing to reasonable environmental circulation and restoration Contributing 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 models Business 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 Plan Scheme to Realize the Target Vision 29
  • 30.
    FY2020 – FY2022Mid-term Management Plan Business 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 30
  • 31.
    FY2020 – FY2022Mid-term Management Plan Business 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 31
  • 32.
    FY2020 – FY2022Mid-term Management Plan Strategy for Enhancement of Organizational Strength 32 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
  • 33.
    33 Forward-looking statements includingearnings 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. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. <Contact> Corporate Planning Department Tel : 050-1702-4203 Email : ir@rle.ricoh.co.jp URL : https://www.r-lease.co.jp Ricoh Leasing Company, Ltd.