Fiscal Year
Ended March
2024 (FY2023)
Financial
Highlights
May 2, 2024
Ricoh Leasing Company, Ltd.
Table of Contents
- Consolidated Results for the Fiscal Year Ended March 2024
- Performance by Business field
- Progress of Mid-Term Management Plan (FY2023 - FY2025)
- Consolidated Income Forecast for Fiscal Year Ending March 2025
- 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
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Disclaimer
RICOH Leasing Co. Ltd. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 11:52:13 UTC.