RICOH LEASING COMPANY,LTD.

Business Details

Provides Finance Lease, Operating Lease, and Installment Sales for office and information-related equipment, medical equipment, industrial machine tools, vehicles and transport equipment, in addition to lending services such as Corporate Loans, Industry-Specific Loans & Apartment Loans. By broadly capturing corporate capital expenditure demand, this segment forms the Group's earnings base, with an operating asset balance of ¥1,084,914 million, accounting for 87.2% of the total.

Recent Overview

Net sales increased, but segment profit decreased by ¥442 million year on year due to higher expenses.

In the Lease & Finance Business for FY2026 (ending March 2026), contract execution volume expanded to ¥404,330 million (up 5.7% year on year) driven by demand for PC replacement following the end of Windows 10 support and by corporate responses to labor shortages and labor-saving investment, and net sales increased to ¥316,388 million (up 8.0% year on year). On the other hand, operating expenses also increased to ¥295,554 million (up 8.8% year on year), causing segment profit to decrease to ¥20,834 million (down 2.1% year on year). Installment sales contract execution volume decreased 19.0% year on year, while loans performed well, increasing 15.3%.

Key Products

Growth Drivers

• Expansion of Finance Lease contract execution volume driven by PC replacement demand following the end of Windows 10 support (October 2025) (FY2026 (ending March 2026): ¥249,647 million, up 8.4% year on year)
• New contract acquisition through capturing demand for efficiency and labor-saving investment aimed at resolving corporate labor shortages
• Earnings contribution from expansion of the loan balance (operating asset balance of ¥294,596 million, up 6.5% year on year)
• Continued increase in operating asset balance (¥1,084,914 million, up 6.3% year on year) supported by strong new contract performance
• Strengthening of competitive advantage based on the new medium-term management plan starting in April 2026, 'Expanding the Possibilities of Leasing to Become a Foundation Supporting SMEs'

Risks

• Increased funding costs due to rising interest rate expectations amid the Bank of Japan's anticipated additional rate hikes (interest expense doubled from ¥174 million in the prior period to ¥359 million in the current period)
• Credit risk related to the large receivables balance in the Lease & Finance Business (provision for allowance for doubtful accounts increased from ¥1,143 million in the prior period to ¥2,018 million in the current period)
• Suppression of corporate capital expenditure due to disruption of global supply chains stemming from U.S. trade policy trends and heightened geopolitical risk
• Demand fluctuation risk for specific products, as seen in the decline in installment sales contract execution volume (from ¥51,768 million in the prior period to ¥41,946 million in the current period, down 19.0%)
• Challenge of maintaining profitability in the core segment amid a forecast of a significant decline in operating profit to ¥17,600 million (down 14.7% year on year) in the consolidated earnings forecast for FY2027 (ending March 2027)