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Second Quarter of Fiscal Year Ending March 2017
Briefing on Financial Results
0
October 21, 2016
Ricoh Leasing Company, Ltd.
1
1. Performance Overview (Second Quarter of Fiscal Year Ending
March, 2017)
実績報告
2
15/9 16/9 Actual Actual Growth Rate
Net sales 1,363 1,448 6.3
Gross profit 150 156 4.0
SGA expenses 67 68 2.3
Operating income 83 88 5.3
(Operating income ratio) 6.1 6.1 0.0
Ordinary income 82 87 5.5
Net income 54 60 9.6
(Net income ratio) 4.0 4.2 0.2
Year-on-year change in yen Net income per share 175.99 192.93 16.94
Dividend per share 27.50 30.00 2.50
Consolidated Results
(100 millions of yen, %)
In this document, “Profit attributable to owners of parent” is presented as “Net income.”
Performance Overview
実績報告
3
Factors Affecting Operating Income
(100 millions of yen)
8,300 million
yen
16/9Actual
8,800 million
yen
15/9Actual
500 million yen
Gross profit calculation SGA expenses
+2
Increase in financial income
Expenses
(1)
Decrease in financing cost
±0
Increase in gross margin for the
lease/installment business
Increase in Allowance for doubtful accounts
+3
+1
Performance Overview
実績報告
4
Transaction Volume by Business
(100 millions of yen, %)
*Transaction volumes are calculated on an inspection basis.
15/9 16/9
Actual Actual Growth Rate
Finance lease 1,360 1,304 (4.1)
Operating lease 69 53 (21.9)
Installment sales 257 293 13.9
Leasing/installment sales business 1,687 1,652 (2.1)
Financial services business 139 172 24.2
Total transaction volume 1,826 1,825 (0.1)
Performance Overview
実績報告
5
(100 millions of yen, %)
15/9 16/9 Japan Leasing
Association *Cumulative total
from April to August
Actual Actual Growth Rate Growth Rate
Office and IT-related equipment 921 894 (2.9) (7.1)
Medical equipment 218 216 (1.0) 7.0
Industrial machinery 167 161 (3.9) 5.4
Commercial and service industry equipment 159 147 (7.8) 2.5
Vehicles and transportation equipment 73 80 8.8 3.5
Others 146 153 4.7 13.8
Total transaction volume 1,687 1,652 (2.1) 1.1
Performance Overview Transaction Volume by Product: Leasing/Installment sales business
実績報告
6
Operating Results by Segment (Lease/Installment business)
(100 millions of yen)
Net sales (left bar) Segment income (right bar)
1,141 1,173 1,246
1,320 1,402
78 70 71 71
74
0
50
100
150
0
500
1,000
1,500
12/9 13/9 14/9 15/9 16/9
Performance Overview
実績報告
7
(100 millions of yen)
% of operating income
13.8% 16.3% 16.9% 19.2% 18.9%
24.9 27.4
29.8 32.8
35.0
11.9 13.0 13.9 16.0 16.6
0
10
20
30
40
12/9 13/9 14/9 15/9 16/9
Medium-term management strategy target: Increase the profit contribution ratio of the financial services business to 20%.
Net sales Segment income
Performance Overview Operating Results by Segment (Financial Services Business)
実績報告
8
Product sites of the collection agency service
Care Concierge
Number of monthly transaction cases of collection agency services
Factoring services for nursing-care benefits - Annual transaction volume
(Unit: 10,000)
(100 millions of yen)
90
198
326
471
0
100
200
300
400
500
600
13/3 14/3 15/3 16/3 16/9
291
600
92 106
128 137 144
0
50
100
150
200
13/3 14/3 15/3 16/3 16/9
170 Target for the final year (year ending March 31, 2017) of medium-term management strategy
Target for the final year (year ending March 31, 2017) of medium-term management strategy
Performance Overview Financial Services Business Collection agency services and factoring services for nursing-care facilities
実績報告
9
Balance of Operating Assets and Default Rate
Finance lease
(securitized portion)
Operating loans
Installment sales
Operating lease
*Balances shown include securitized portions.
Default rate = Default loss amount / Average balance of operating assets
Default rate (%)
(100 millions of yen)
5,185 (246)
5,327 (246)
5,451 (246)
5,517 (247)
5,564 (247)
149 158 178 187 187 644 725 781 837 873 1,099
1,142 1,222 1,231 1,261
4,000
5,000
6,000
7,000
8,000
14/9 15/3 15/9 16/3 16/9
0.19 0.18 0.18 0.18 0.17
7,079 7,354
7,633 7,773 7,887
Performance Overview
実績報告
10
Total Procurement Amount and Capital Cost
[External ratings] S&P A- R&I A+ JCR AA-
Fixed charge coverage ratio (%)
Capital cost
Total amount procured
*Total amounts procured: Balances include debts paid through securitization. Capital costs shown are expenses included in the calculation of cost of sales.
(100 millions of yen)
Long-term
Short-term
58.6 61.1 61.8 62.0 63.1
0
2,000
4,000
6,000
8,000
14/9 15/3 15/9 16/3 16/9
7 7 7 7 6
6,170 6,337 6,331 6,710 6,747
Performance Overview
実績報告
11
Selling, General and Administrative Expenses
Bad debt expense
Personnel expenses
Others
(100 millions of yen)
66 66 67 68 67
30 28 30 28 30
32 32 33 33 33
5 3 4 5
20
40
60
80
14/9 15/3 15/9 16/3 16/9 0
3
Performance Overview
12
2. Financial Forecast (Fiscal Year Ending March 2017)
実績報告
13
Mar
ket
Cus
tom
er
Com
pany
Current Business Environment
• Deterioration of corporate earnings due to concerns about economic slowdowns in major countries, correction of yen’s depreciation, etc. ⇒ Impact on capital investments in Japan
• Monetary easing policy (negative interest rates, etc.) by the Bank of Japan ⇒ Low-level corporate bankruptcies and fall in interest rates
• Development of new technologies (AI, robots, Fintech, Society 5.0, etc.)
Medical & nursing care: Bipolarization before the scheduled revisions of medical fees and nursing care fees in 2018 (hospitals, clinics, pharmacies, nursing care facilities) ⇒ M&A, investments (capital, human resources), relocation, business closure
Information equipment : Increasing needs for virtualization and cloud computing ⇒ From selling equipment to receiving consignment of operations (service
contract) Manufacturing: Capital investments have been stagnant since the China shock last
summer
• Sluggish growth in transactions due to changes in the market environment
• Decreases in lease renewals due to decreasing transactions for new leases after Lehman collapse
• Defaults in the nursing care industry on the rise though at continuing low levels
Performance Overview
業績予想
14
Consolidated Income Forecast (100 millions of yen, %)
16/3 17/3
Actual Medium-term management
strategy target Forecast
Difference with medium-term strategy
target
Growth Rate
Net sales 2,758 2,800 2,850 50 3.3 Gross profit 303 - 310 - 2.1
SGA expenses 134 - 137 - 2.1 Operating income 169 175 173 (2) 2.1
(Operating income ratio) 6.1 6.3 6.1 (2.0) (0.0) Ordinary income 168 - 171 - 1.5
Net income 110 109 115 6 4.1 (Net income ratio) 4.0 3.9 4.0 0.1 0.0
Year-on-year change in yen ROA 1.29% 1.3% 1.29% (0.01%) (0.00%) ROE 7.9% 7.4% 7.7% 0.3% (0.2%)
Net income per share 353.96 - 368.39 - 14.43 Dividend per share 55.00 - 60.00 - 5.00
Financial Forecast
業績予想
15
Transaction Volume Forecast by Business
(100 millions of yen, %)
16/3 17/3
Actual Medium-term management
strategy target Forecast
Difference with medium-term strategy
target
Growth Rate
Finance lease 2,663 - 2,670 - 0.2
Operating lease 127 - 130 - 2.4
Installment sales 547 - 600 - 9.6
Leasing/Installment sales business 3,337 3,660 3,400 (260) 1.9
Financial services business 264 340 285 (55) 7.9
Total transaction volume 3,601 4,000 3,685 (315) 2.3
Financial Forecast
業績予想
16
Transaction Volume Forecast by Product: Leasing/Installment sales business
(100 millions of yen, %)
16/3 17/3
Actual Medium-term management
strategy target Forecast
Difference with medium-term strategy
target
Growth Rate
Office and IT-related equipment 1,794 2,200 1,800 (400) 0.3
Medical equipment 432 500 455 (45) 5.3
Industrial machinery 337 - 356 - 5.3
Commercial and service industry equipment 328 - 335 - 2.1
Vehicles and transportation equipment 139 - 144 - 2.9
Others 305 - 310 - 1.4
Total 3,337 3,660 3,400 (260) 1.9
Financial Forecast
業績予想
17
Increasing customers (vendors, users)
Expa
nsio
n of
pro
duct
s so
ld
Expa
nsio
n of
regi
ons
Expa
nsio
n of
new
are
as a
nd
busi
ness
es
New services in
nursing care
Environment
Loan guarantee
Others
Vehicle transport
application
Construction machinery
Medical/ Nursing care
Administration/ Information
Environment
Loan guarantee
Construction machinery
+107%
+47%
No past result
Total transaction volume 14/3 17/3Forecast
New areas
Existing areas
Balance of Operating Assets
345,700 million yen 368,500 million yen
14/3 17/3Forecast 697,800 million yen 807,300 million yen
+6.6%
+15.7%
*Figures in circles represent growth rates of 17/3 forecasts against 14/3 results.
Others Actual results
exist
Financial Forecast Management Strategy (Looking back on OCeaN Strategy)
Administration/ Information
Vehicle
transport application
(11.2%)
+14.3%
Medical/ Nursing care
+3.4%
New services in
nursing care
Actual results exist
実績報告
18
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.
Reliability for
the Future Ricoh Leasing Company, Ltd.
Ricoh Leasing Company, Ltd.
19
(100 millions of yen, %)
15/9 16/9
Actual Actual Growth Rate
Leasing revenue 1,063 1,085 2.1
Installment sales revenue 161 201 24.6
Financing revenue 12 13 0.5
Commission revenue 22 24 10.1
Others 102 123 20.3
Total net sales 1,363 1,448 6.3
<Reference> Breakdown of Sales for the Second Quarter of the Year Ending March 2017
20
<Reference> Breakdown of Sales Forecast for Fiscal Year Ending March 2017
(100 millions of yen, %)
16/3 17/3
Actual Forecast Growth Rate
Leasing revenue 2,124 2,190 3.1
Installment sales revenue 352 390 10.7
Financing revenue 26 27 2.4
Commission revenue 44 48 8.2
Others 211 195 (7.6)
Total net sales 2,758 2,850 3.3
21
<Reference> Anticipated Factors Affecting Operating Income for FYE March 2017
(100 millions of yen)
17,300 million
yen
17/3Forecast
16,900 million
yen
400 million yen
Gross profit calculation SGA expenses
Increase in Allowance for
doubtful accounts
16/3Actual
+2
Increase in financial income
Increase in gross margin for the
lease/installment business
Expenses
(2)
+4
Financing cost
±0 ±0
