Ricoh Leasing : Presentation Material for Mar.2024（938KB）

Fiscal Year

Ended March

2024 (FY2023)

Financial

Highlights

May 2, 2024

Ricoh Leasing Company, Ltd.

Table of Contents

1. Consolidated Results for the Fiscal Year Ended March 2024
2. Performance by Business field
3. Progress of Mid-Term Management Plan (FY2023 - FY2025)
4. Consolidated Income Forecast for Fiscal Year Ending March 2025
5. Reference Material

2

1. Consolidated Results for the Fiscal Year

Ended March 2024

3

Financial Performance Overview for the

Fiscal Year Ended March 2024

1. Net sales increased, but profit fell.

Excluding the reactionary decline in COVID-19-related rental special demand in the previous fiscal year, Operating Profit increased due to growth of leases and installment sales, and exceeded initial forecasts. Net income declined due to Extraordinary loss (loss on valuation of investment securities) of 5.1 billion yen.

２． Operating assets stood at 1,116.5 billion yen

(Increased 26.2 billion yen from the end of the previous fiscal year).

Investment business primarily related to real estate grew and operating assets increased.

３． Net sales are forecast to rise and profit is forecast to rise in the

fiscal year ending March 2025.

Gross profit before deducting Financial Expenses is expected to increase mainly from leases and installment sales.

Operating profit is expected to increase as a result of absorbing increases in the cost of financial expenses, selling, general and administrative expenses..

Mid-Term Management Plan Toward a dividend payout ratio of 40% or more in the final year, annual dividends per share are expected to grow by double digits to 165 yen per share.

* In this document, securitized lease receivables are not deducted from operating assets.
* In this document, "Profit Attributable to Owners of Parent" is listed as "Net Income."
* Figures for the fiscal year ended March 31, 2023 are based on revised figures due to the finalization of accounting treatment, as	4
the business combination with Welfare Suzuran was finalized in the first quarter of the fiscal year ended March 2024.

Consolidated Results

• Profitability has increased due to improved asset-yields contributed and growth in the services business.
  The early repayment of large receivables also contributed to the increase in gross profit.
• Selling, General and Administrative Expenses increased due to investments aimed at strengthening business foundations, mainly in human resources.
• Excluding one-time extraordinary losses, results were generally in line with initial forecasts.

					(Billion Yen)
	2023/3	2024/3		2024/3	Achievement
	4Q	4Q	Growth	Initial Full-year
	Rate
	Cumulative total	Cumulative total	Rate	Forecast
Net Sales	298.8	308.3	3.2%	306.0	100.8%
Gross Profit	43.2	45.5	5.3%	45.0	101.3%
Selling, General and	22.0	24.5	11.4%	24.4	100.6%
Administrative Expenses
Operating Profit	21.2	21.0	(1.0%)	20.6	102.0%
Ordinary Profit	21.5	21.5	(0.1%)	20.7	104.1%
Net Income	14.8	11.2	(24.2%)	14.4	78.3%
		150.00	YoY change
Dividend per Share(yen)	145.00	5.00	150.00	－
Earnings per Share(yen)	482.48	365.89	(116.59)	467.16	－
Dividend Payout Ratio	30.1%	41.0%	10.9%	32.1%	－
ROA（Return on Asset Ratio）	1.23%	0.91%	(0.32%)	1.15%	－
ROE（Return on Equity Ratio）	7.2%	5.2%	(2.0%)	6.7%	－

5

Factors Affecting Operating Profit

• Results at Welfare Suzuran, which became a subsidiary in December 2022, were reflected in consolidated results, and the gross margin for Services Business increased, as were human

resources and other expenses.

Gross Profit		Selling, General and
	Administrative Expenses

+0.01

(0.50)

Gross Margin

(Billion Yen)

＋1.41

for

Financial

Investment

Expenses

Human

Business

(1.33)

Resources

＋0.39

Gross Margin

Gross Margin

for Services

Business

for Loans

(1.01)

＋2.10

Other

Expenses

(0.05)

(0.10)

Strategic

（1.13）

Expenses

Provision of

allowance for

Doubtful

Accounts

Gross Margin

for Leases and

21.22

COVID-19-

Installment

related rental

Sales Business

21.01

special

billion yen

demand

Leases & Finance

billion yen

20.09

billion yen

Business

＋2.49

23/3

excluding special factors

24/3

4Q

23/3

4Q

cumulative total 4Q cumulative total

cumulative total

6

Consolidated Balance Sheets

• Total assets increased due to increase in operating assets, mainly Real Estate Field.

		2023/3	2024/3
		Actual	Actual	Increase/
		Decrease
	Cash and deposits	14.1	4.9	(9.1)
	Lease receivables and	509.7	507.6	(2.0)
	investments in leases
	Installment receivables	181.6	175.1	(6.4)
	Accounts receivable	253.7	260.1	6.4
	- operating loans
	Assets for lease	69.1	89.4	20.3
	Allowance for doubtful	(12.9)	(12.6)	0.2
	accounts
	Other assets	221.4	222.4	0.9
Total assets	1,236.9	1,247.2	10.3

				(Billion Yen)
		2023/3	2024/3
		Actual	Actual	Increase/
		Decrease
	Short-term	169.0	189.2	20.2
	Interest-Bearing Debt
	Long-term	697.0	701.3	4.3
	Interest-Bearing Debt
	Long-term payables	35.5	21.0	(14.5)
	under securitization of
	lease receivables
	Other liabilities	123.6	113.8	(9.8)
Total Liabilities	1,025.2	1,025.3	0.1
Total net assets	211.7	221.9	10.2
Total liabilities and net assets	1,236.9	1,247.2	10.3

• Allowance for doubtful accounts shows the total of current assets and non-current assets.
• Long-termdebt within one year(Bonds payable, Long-term borrowings) is included in short-termInterest-Bearing Debt.

7

Operating Assets and Default Rate

(Billion Yen)

0.16%

1,019.1

23.4

8.3

181.6

152.9

30.5

622.1

0.15%

1,039.4

30.2

16.6

200.6

161.6

30.4

599.7

0.12%

1,055.0

41.4

19.0

221.9

160.8

29.5

582.2

0.14%

1,090.2

45.4

19.8

253.7

157.5

33.1

580.4

0.15%

1,116.5

66.5

28.0

260.1

150.7

34.5

576.4

0.00%

Housing Rental

and Real Estate

Business

Solar Power

Generation

-0.50%

Business

Loans

.Installment00% Sales

Operating Leases

-1.50%

Finance Leases

Default Rate

-2.00%

•	Operating assets increased
	due to investment in
	investment business in real
	estate-related businesses and
	solar power generation while
	the early repayment of large
	receivables installment sales
	and loans occurred.
• The default loss amount and
	the default rate remained at a
	low level.
*	Amount of Securitized Lease Receivables for
	24/3: 68.7 billion yen.

20/3

21/3

22/3

23/3

24/3

* Default rate = Default loss amount / Average

balance of operating assets

8

Total Procurement Amount and Financial Expenses

• Total Procurement Amount

• Financial Expenses and Financial Expenses Ratio

(Billion Yen)

(Billion Yen)

• Funding was conducted in consideration of interest rate risk and liquidity risk.
• Issuer rating by Rating and Investment Information, Inc. (R&I) upgraded to A+ (stable)
• Financial expenses and financial expenses ratio increased.

• Payables under securitization of lease receivables includes off-balance sheet financing.
• Financial expenses ratio = Financial expenses / Average balance of operating assets

9

2．Performance by Business field

10