Ricoh Leasing : Financial Highlights_FY20232Q（797KB）

Second Quarter

of Fiscal Year

Ending March

2024 (FY2023)

Financial

Highlights

October 31, 2023

Ricoh Leasing Company, Ltd.

Table of Contents

1. Consolidated Results for the Second Quarter of Fiscal Year Ending 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 2024
5. Reference Material

2

1. Consolidated Results for the Second Quarter of Fiscal Year Ending March 2024

3

Financial Performance Overview for the Second

Quarter of Fiscal Year Ending March 2024

1. Net sales increased, but profit fell.

Net sales increased due to the early repayment of large receivables and growth in the Services business. Net income declined chiefly due to a loss on valuation of investment securities of 3.7 billion yen.

2. Operating assets stood at 1,086.8 billion yen (decreased 3.4 billion yen from the end of the previous fiscal year).

Executed contracts volume continues to recover after a downturn amid the COVID-19 pandemic, but operating assets declines due to the early repayment of several large receivables.

3. Disclosure of awareness of the current situation and initiatives to

enhance corporate value

Aim for profitability exceeding the cost of equity by raising ROE through continued cost-of-capital management and expansion of non-asset businesses.

Reviewed basic policy for shareholder return to improve financial leverage.

4． The full-year income forecast and dividend forecast for the fiscal year ending March 2024 remains unchanged from the initial forecast.

Operating Profit was 55.6% of the full-year forecast. Steady progress was made.

The Company applies mark-to-market accounting to securities and makes reversal entries.

The amount of loss on valuation of investment securities may change or not be recorded due to the share price during or at the end of the fiscal year. There have been no changes to the initial forecast.

* In this document, securitized lease receivables are not deducted from operating assets.	4
* In this document, "Profit Attributable to Owners of Parent" is listed as "Net Income."

Consolidated Results

• Gross Profit increased due to growth of services Business and Leases & Finance Business. This offset the decline in COVID-19-related rental special demand in the previous year.
• Selling, General and Administrative Expenses increased due to investing in strengthening the business foundation. Strengthen management of priorities and keep the progress rate within the plan.
• Steady progress was made toward the full-year forecast except for net income.

(Billion Yen)

	2023/3	2024/3	2024/3	Progress
	2Q	2Q	Growth	Full-year
	Rate
	Cumulative total	Cumulative total	Rate	Forecast
Net Sales	149.0	155.3	4.2%	306.0	50.8%
Gross Profit	21.9	23.0	5.2%	45.0	51.3%
Selling, General and	9.7	11.6	19.0%	24.4	47.7%
Administrative Expenses
Operating Profit	12.1	11.4	(5.8%)	20.6	55.6%
Ordinary Profit	12.3	11.6	(6.1%)	20.7	56.2%
Net Income	8.4	5.3	(36.6%)	14.4	37.3%
		75.00	YoY change
Dividend per Share(yen)	65.00	10.00	150.00	－
Earnings per Share(yen)	274.93	174.37	(100.55)	467.16	－
Dividend Payout Ratio	23.6%	43.0%	19.4%	32.1%	－
ROA（Return on Asset Ratio）	1.42%	0.87%	(0.55%)	1.15%	－
ROE（Return on Equity Ratio）	8.3%	5.0%	(3.3%)	6.7%	－

* Actual ROA and ROE are annualized numerical figures

5

Factors Affecting Operating Profit

• Results at Welfare Suzuran, which became a subsidiary in December last year, 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

(0.76)

COVID-19-

12.15 related rental

(0.10)

Gross Margin

(0.11)

Financial

for

Human

＋0.94

Investment

Expenses

(0.69)

Business

Resources

＋0.15

Gross Margin

Gross Margin

for Services

(0.77)

for Loans

Business

+1.02

Other

Expenses

(0.14)

Strategic

Expenses

Gross Margin

for Leases and

(Billion Yen)

(0.23)

Provision of

allowance for

billion yen	special
	demand

Installment

11.39Sales Business

billion yen Leases & Finance

Business

＋1.18

Doubtful Accounts

11.45

billion yen

23/3	excluding special factors	24/3
2Q	23/3	2Q	6
cumulative total 2Q cumulative total	cumulative total

Consolidated Balance Sheets

• Assets and liabilities decreased from the end of the previous fiscal year chiefly due to the early repayment of large receivables.

• Other assets increased due to assets for solar power generation business, etc.	(Billion Yen)

		2023/3	2024/3
			End of 2Q	Increase/
		Actual	Decrease at
		Actual	the End of the
				Previous Term
	Cash and deposits	14.1	9.0	(5.0)
	Lease receivables and	509.7	505.9	(3.8)
	investments in leases
	Installment receivables	181.6	175.6	(5.9)
	Accounts receivable	253.7	252.9	(0.7)
	- operating loans

		2023/3	2024/3
			End of 2Q	Increase/
		Actual	Decrease at
		Actual	the End of the
				Previous Term
	Short-term	169.0	163.0	(6.0)
	Interest-Bearing Debt
	Long-term	697.0	704.5	7.5
	Interest-Bearing Debt
	Long-term payables	35.5	27.6	(7.9)
	under securitization of
	lease receivables
	Other liabilities	123.6	119.9	(3.6)

	Assets for lease	69.1	71.9	2.8
	Allowance for doubtful	(12.9)	(12.4)	0.4
	accounts
	Other assets	221.4	229.3	7.8
Total assets	1,236.9	1,232.4	(4.5)

Total Liabilities	1,025.2	1,015.1	(10.1)
Total net assets	211.7	217.3	5.6
Total liabilities and net assets	1,236.9	1,232.4	(4.5)

* 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-termInterest-Bearing Debt.
*	The accounting method for the business combination with Welfare Suzuran was determined at the end of the first quarter of
	the fiscal year ending March 31, 2024, and the figures at the end of the fiscal year ended March 31, 2023 are figures revised	7
	after the determination of the accounting method.

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

0.14%

1,086.8

47.3

25.0

252.9

150.5

34.4

576.5

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 decreased
	3.4 billion yen from the end of
	the previous fiscal year due to
	the early repayment of several
	large receivables while
	operating assets accumulated
	as a result of new contracts
	executed.
• The default loss amount and
	the default rate remained at a
	low level.
*	Amount of Securitized Lease Receivables for
	the second quarter of 24/3: 70.6 billion yen.
*	Default rate = Default loss amount / Average
	balance of operating assets (default rate has
	been calculated by annualizing the default

20/3	21/3	22/3	23/3	24/3
				2Q

loss amount for the second quarter of 24/3)

8

Total Procurement Amount and Financial Expenses

• Total Procurement Amount

(Billion yen)

879.5	915.4	913.2	961.5	955.1
95.5	87.6
60.0	100.0	100.0
							Payables under securitization
608.4	590.0	647.5	697.0	704.5		of lesase receivables
	Long-term Debt
							Long-term Debt within one
143.8	195.2	147.5	133.0	145.0		year
	Short-term Debt
	67.2	30.2	18.2	36.0	18.0
20/3	21/3	22/3	23/3	24/3
					2Q

• Financial Expenses and Financial Expenses Ratio

											(Billion yen)
			0.14%	0.14%	0.15%	0.16%	0.30%
	0.12%
												0.10%
	1.12	1.36	1.37	1.49						3-4Q
										-0.10%
			0.69	0.70	0.77						1-2Q
	0.58
									-0.30%
									0.83				Financial
	0.54	0.67	0.67	0.72				Expenses
						Ratio
												-0.50%
	20/3	21/3	22/3	23/3	24/3
										2Q

• • Raise funds while managing and controlling interest rate fluctuation risk and liquidity risk.
  • Issued our first sustainability bond in October at 10.0 billion yen.
  • Financial expenses rose. The financial expenses ratio increased slightly.
• Payables under securitization of lease receivables includes off-balance sheet financing.
• Financial expenses ratio = Financial expenses / Average balance of operating assets
• For the second quarter of 24/3, financial expenses ratio has been calculated by annualizing financial expenses.

9

2．Performance by Business field

10