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Earnings presentation8566RICOH LEASING COMPANY,LTD.Financials (excluding banks)

Summary of Second-Quarter Results for the Fiscal Year Ending March 2027 (FY2026)

For the cumulative second quarter of the fiscal year ending March 2027, gross profit increased 1.1% year on year, while operating profit fell 8.2% and ordinary profit fell 12.3% due to increases in personnel and IT investment, funding costs and other factors. Although operating profit and ordinary profit declined, the company assessed progress as exceeding its full-year forecast and left the full-year forecast unchanged.

Worth reading
80Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-8.2
Operating profit year on year (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit¥101 100 million-8.2%
Ordinary income¥99 100 million-12.3%
Net income¥62 100 million+0.2%
Selling, general and administrative expenses¥156 100 million
Full-year earnings forecast
Net Sales
¥3,700 100 million
Gross profit
¥504 100 million
Selling, general and administrative expenses
¥328 100 million
Operating profit
¥176 100 million
Ordinary income
¥174 100 million
Net income for the current fiscal year
¥119 100 million
Balance of operating assets
¥13,430 100 million
Value added + growth investment
¥339 100 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net profit49.2%
Funding costs42.2%
Gross profit51.2%
Selling, general and administrative expenses47.6%
Provision for allowance for loan losses46.9%
Operating profit57.9%
Ordinary income57.4%
Interim net profit52.7%
Value added + growth investment50.4%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Tracking above plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Vendor & Customer Solutions Business29
BPO & Services Business2.5
Environmental and Real Estate Business-0.9
Funding costs-27.7
General expenses-9.1
Credit costs-2.3
Employee and executive compensation-9.7
Growth Investment-4.6
Non-Recurring Expenses-1.7
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Policy Rate Hike2 times
Funding costsExpected to continue increasing
New initiatives
  • The paperless, multi-payment service "コレクトPlus," jointly developed with payment service providers, is scheduled to launch in spring 2027
  • Rollout of the monthly add-on service for PCs, "レンタル保守プラス"
  • Introduction of an employee stock compensation plan
  • Establish allowances for advanced professional qualifications
  • Introduction of relocation and regional-work allowances
  • Making AI-related certifications mandatory for all employees
Key KPIsA metric the company considers important as a management benchmark.
Balance of operating assets
¥13,030 100 million
Year on year against the same period last year+¥19.7 billion from the previous fiscal year-end
Loss ratio
0.11 %
Year on year against the same period last year0.14% at the previous fiscal year-end
Payout ratio
63 %
Year on year against the same period last year+18.6 percentage points
ROA
0.84 %
Year on year against the same period last year-0.05 percentage points
ROE
5.2 %
Year on year against the same period last year-0.1 percentage points
Equity ratio
16 %
Year on year against the same period last year-0.8 percentage points
Segment results
Leasing & Finance Business
Net Sales1,624
Revenue unit¥100 million
Year-on-year revenue growth1.7
Segment profit104
Profit unit¥100 million
Year-on-year change in profit-2.7
Service business
Net Sales58
Revenue unit¥100 million
Year-on-year revenue growth15.7
Segment profit6
Profit unit¥100 million
Year-on-year change in profit15.8
Investment Business
Net Sales63
Revenue unit¥100 million
Year-on-year revenue growth4
Segment profit9
Profit unit¥100 million
Year-on-year change in profit-30.1
Medium-term management plan targets
Rental contracts signed
Actual results204
Results unit¥100 million
Target fiscal yearFiscal year ending March 2029
Target value320
Target unit¥100 million
Number of collection agency transactions
Actual results4,068
Results unitten thousand items
Target fiscal yearFiscal year ending March 2029
Target value6,700
Target unitten thousand items
Outstanding Receivables Guarantee Balance
Actual results31
Results unit¥100 million
Target fiscal yearFiscal year ending March 2029
Target value210
Target unit¥100 million
Financial targets
Equity ratio
Guideline15%
Actual results16.0%
Number of employees
Number of Employees1,371 people
Annual Dividend
Annual dividend per share¥256
Interim¥128
End of period¥128
Payout ratio
66.3% (forecast)
Gross profit
¥257 100 million+1.1%
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Operating profit¥101 100 million (YoY -8.2%)
Ordinary income¥99 100 million (YoY -12.3%)
Net income¥62 100 million (YoY +0.2%)
Gross profit¥257 100 million (YoY +1.1%)
Selling, general and administrative expenses¥156 100 million
Full-year earnings forecastNet Sales ¥3,700 100 million / Gross profit ¥504 100 million / Selling, general and administrative expenses ¥328 100 million / Operating profit ¥176 100 million / Ordinary income ¥174 100 million / Net income for the current fiscal year ¥119 100 million / Balance of operating assets ¥13,430 100 million / Value added + growth investment ¥339 100 million
Progress against full-year forecastNet profit 49.2% / Funding costs 42.2% / Gross profit 51.2% / Selling, general and administrative expenses 47.6% / Provision for allowance for loan losses 46.9% / Operating profit 57.9% / Ordinary income 57.4% / Interim net profit 52.7% / Value added + growth investment 50.4%
Self-assessment against the planTracking above plan
Segment resultsLeasing & Finance Business Net Sales 1,624 / Revenue unit ¥100 million / Year-on-year revenue growth 1.7 / Segment profit 104 / Profit unit ¥100 million / Year-on-year change in profit -2.7 / Service business Net Sales 58 / Revenue unit ¥100 million / Year-on-year revenue growth 15.7 / Segment profit 6 / Profit unit ¥100 million / Year-on-year change in profit 15.8 / Investment Business Net Sales 63 / Revenue unit ¥100 million / Year-on-year revenue growth 4 / Segment profit 9 / Profit unit ¥100 million / Year-on-year change in profit -30.1
Breakdown of Factors Affecting the ChangeOperating profit Vendor & Customer Solutions Business 29 / BPO & Services Business 2.5 / Environmental and Real Estate Business -0.9 / Funding costs -27.7 / General expenses -9.1 / Credit costs -2.3 / Employee and executive compensation -9.7 / Growth Investment -4.6 / Non-Recurring Expenses -1.7
Key KPIsBalance of operating assets ¥13,030 100 million / Loss ratio 0.11 % / Payout ratio 63 % / ROA 0.84 % / ROE 5.2 % / Equity ratio 16 %
Number of employeesNumber of Employees 1,371 people / Change Not disclosed
Assumptions Underlying the Business OutlookPolicy Rate Hike 2 times / Funding costs Expected to continue increasing
Medium-term management plan targetsRental contracts signed Actual results 204 / Results unit ¥100 million / Target fiscal year Fiscal year ending March 2029 / Target value 320 / Target unit ¥100 million / Number of collection agency transactions Actual results 4,068 / Results unit ten thousand items / Target fiscal year Fiscal year ending March 2029 / Target value 6,700 / Target unit ten thousand items / Outstanding Receivables Guarantee Balance Actual results 31 / Results unit ¥100 million / Target fiscal year Fiscal year ending March 2029 / Target value 210 / Target unit ¥100 million
Financial targetsEquity ratio Guideline 15% / Actual results 16.0%
Annual DividendAnnual dividend per share ¥256 / Interim ¥128 / End of period ¥128
Payout ratio66.3% (forecast)
New initiativesThe paperless, multi-payment service "コレクトPlus," jointly developed with payment service providers, is scheduled to launch in spring 2027, Rollout of the monthly add-on service for PCs, "レンタル保守プラス", Introduction of an employee stock compensation plan, Establish allowances for advanced professional qualifications, Introduction of relocation and regional-work allowances, Making AI-related certifications mandatory for all employees
Items this document does not state (12)
Net SalesGross Profit MarginOperating profit marginResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Although net revenue increased, mainly in the Vendor & Customer Solutions business, funding costs due to higher interest rates, general expenses, loan loss expenses, personnel and IT investment, and distributions to employees and directors also increased.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Summary of Second-Quarter Results for the Fiscal Year Ending March 2027 (FY2026) | RICOH LEASING COMPANY,LTD. (8566) timely disclosure | Komori