FY2020 FY2022 Medium-term Management Plan
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FY2020 – FY2022 Medium-term Management Plan December 25, 2020 Ricoh Leasing Company, Ltd.
Transcript of FY2020 FY2022 Medium-term Management Plan
FY2020 – FY2022
Medium-term Management Plan
December 25, 2020
Ricoh Leasing Company, Ltd.
Formulation of FY2020 – FY2022 Mid-term Management Plan
• Challenges to Realize “beyond leasing”
• Diversification of assets such as housing rental and power generation businesses
• Reinforcement of foundation (human resources, IT) aimed at future growth
• Revision of corporate philosophy
Customers and markets
Competitors
• Concerns about economic deterioration due to COVID-19
• Emergence of new business utilizing innovative technologies
• Heightening anticipation for response to SDGs
Company
• Diversification of business
• Cross-industry business partnership and alliance
• Intensified competition with organizations in different industries such as local banks
Vision
FY2017 –FY2019
Mid-term Management Plan
“Beyond leasing”Grow to become a company that
can not only provide services/products in leasing and
financial services markets but also offer ones that contribute to the development of the environment,
society and customers
Presenting the mid-to-long
“target vision” and
redefining “business domains”
2
Mid-to-long-term Vision
Create favorable circulation in the environment, society and the economy by adopting “management centered on individuals” and be a bridge to an abundant future
“Become a Circulation-Creating Company”
3
New Business Domains
4
◼ Solving social issues through business activities by strengthening existing businesses and creating new business.
ESG Domain Sub-domain
Ｅ
⚫Environmental circulationContributing to reasonable environmental circulation and restoration
Energy (energy-creation and energy-saving)
3R (Reduce, Reuse, Recycle)
Ｓ
⚫Social & CommunityContributing to achieving safe and secure housing and living environments to diverse customer groups and creating rich & vigorous communities
Healthcare & Wellness
Residence & Life support
Ｇ
⚫Business & GovernanceContributing to economic activities —work, commerce, manufacturing —for society to achieve sustainable growth
Work & Commerce
Industry & Infrastructure
Target Vision of Ricoh Leasing
Contribution to customers
Contribution to society
Happiness of employees
Create favorable circulation in the environment, society and the economy by adopting “management centered on individuals” and be a bridge to an abundant future
Con
tin
uou
s v
alu
e c
reati
on
Realization of management centered on individuals
S GE
• Environment ⇒ Environmental circulation
• Social ⇒ Social & Community
• Governance ⇒ Business & Governance
Creation of sustainable
circulatory society
Financial Services
Advance into new businesses around the Company’s core business fields
FY2017 – FY2019 Mid-term
Management Plan
FY2020 – FY2022 Mid-term
Management Plan5 to 10 years later
LeasesInstallment
Sales
5
Enhance-ment of
organiza-tional
strength
Business growth
Mid-term
Manage-ment Plan
Business domains
Promotion of sustainable
management
Contributing to realizing a clean global environment rooted in
environmental circulationCreation of safe, secure and pleasant housing and living
environments
Further evolution of vendor leasing and enhancement of value provided to customersReconstruction of the rental
business
Contributing to reasonable environmental circulation and
restoration
Contributing to the creation of rich and vigorous communities
Contributing to economic activities — work, commerce,
manufacturing
[G] Business & Governance[S] Social & Community[E] Environmental circulation
Execution of SDGs commitment to realize CSV
Pioneering new business areas and creating business modelsBusiness expansion not dependent on assets
Business expansion under alliance with Mizuho Leasing
Development of a mission-critical system and operation structure for
pursuing high quality and high efficiency
Human resource management that links the employees’ happiness with the Company’s business expansion
Reinforcement of governance
FY2020 – FY2022 Mid-term Management PlanScheme to Realize the Target Vision
6
FY2020 – FY2022 Mid-term Management PlanBusiness Growth Strategy - 1
Further evolution of vendor leasing and enhancement of value provided to customers
Creation of safe, secure and pleasant housing and living environments
２
Contributing to realizing a clean global environment rooted in environmental circulation
３
Business Growth Strategy Measures
１
• Further enhancement of vendor support function
• Development of portal for customers and enhancement of value provided
• Deployment of measures to further upgrade assets
• Contribution to revitalization of local communities by the housing rental business + peripheral services
• Provision of diverse loans in line with the external environment
• Reinforcement of sales of solutions in the fields of healthcare and wellness
• Provision of finance services in the renewable energy field and investment in the power generation business
• Reinforcement of 3R contributing to environmental circulation and reduction of environmental load
7
FY2020 – FY2022 Mid-term Management PlanBusiness Growth Strategy - 2
Pioneering new business areas and creating business models
４
Reconstruction of the rental business
５
• Expansion of the rental business through collaboration with Ricoh Group companies
• Expansion of initiatives in the ICT field
• Deployment of new rental services
Business expansion not dependent on assets
６
• Reinforcement of new field pioneering by existing products
• Development of services that meet expectations and needs of society and customers
Business expansion under alliance with Mizuho Leasing７
• Reinforcement of existing businesses and creation of new business opportunities
• Pioneering new fields through diversification of financing methods
• Creation of new businesses through collaboration with investees and alliance partners
• Business investment focused on ESG
• Taking on challenges into overseas markets
Business Growth Strategy Measures
8
FY2020 – FY2022 Mid-term Management PlanStrategy for Enhancement of Organizational Strength
9
Development of a mission-critical system and operation structure for pursuing high quality and high efficiency
１
• Development of a new mission-critical system
• Promotion of business efficiency and improvement of quality through standardization and automation
• Examination and credit function reforms (mechanisms and use of AI)
Human resource management that links the employees’ happiness with the Company’s business expansion
２
• Deployment of measures to increase the happiness of employees
• Continued promotion of diversity & inclusion
• Recruitment and development of human resources to realize business growth
Reinforcement of governance
３
• Deployment of measures to increase corporate value
• Enhancement of internal control and internal audit
Strategy for Enhancement of Organizational Strength
Measures
◼ Continue mid-to-long term investments in IT and human resources, looking toward sustainable growth
IT investment Human resource investment
New mission-critical system
Fro
nt
Leases Commissions
・・・
Business-specific system
Individual business system
Reinforcement of settlement function
Expansion of profitability in each business
Manpow
er
pla
n
Sales
Increase
Increase
Maintain
Mid-to-long term investments (FY2020 – FY2022, FY2023 –FY2025 Mid-term Management Plan)
Investments for Reinforcement of Business Foundation
Digital workflowsImplementation of electronic contracts
Improvement of operating efficiency
Reinforcement of governance
Response to remote working
Business expansion and response to
diversification
Improvement of productivity
Staff mem-bers
Opera-tions
Investing human resources in profitable divisions
Back
Common system
Billing
AssetsBusiness partners
・・・
Contents of investment
Aim
Mid
dle
Common system across operations
Workflows
Documentation control
✓ Reinforcement of human resources for creating new businesses and strengthening governance
✓ Maintaining manpower by pursuing efficiency through using IT and improving operations
New business
・・・
10
Productivity per person
FY2023 and onward
(Million Yen)
18/3 19/3 20/3 21/3 22/3 23/3
19.9 19.9
19.2
17
19
21
20.0 billion yen17.0 billion yen
FY2019 results FY2022 targets
1.1% or more1.08%
6.7% or more6.6%
1,200.0 billion yen
1,019.1 billion yen
* Pre-deduction balance of securitizations of receivables, etc.
FY2020 – FY2022 Mid-term Management PlanTargets
Operating Profit
ROA(Return on Assets)
ROE(Return on Equity)
Balance of Operating Assets
11
39 41 43 45 50
55 60
70
80
90 95
17.3%
13.6% 13.1%14.7% 15.4% 15.5% 15.9%
19.3%20.9%
23.5%
25.9%
30%
11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 ・・・ 23/3
Dividend per Share Dividend Payout Ratio
Basic Policy for Shareholder Return
Our basic policy is to provide stable shareholder returns over the medium to long term, and steadily increase shareholder dividends while working to achieve sustainable growth, appropriate capital structure and a strengthened financial position. Our mid-term management plan target for shareholder returns is a dividend payout ratio of 30%.
Policy for Shareholder Return
Mid-term management plan target
(Yen)
12
Direction from a Long-term Perspective
Aggressive capital policy
Enhancement of corporate value
Trends
• Demographic changes
• Changes in the global environment
• Technological leap
Corporate Philosophy
We will be a bridge to an abundant future
with our independent financial services
• Integrity and reliable business activities
• Services beyond expectations
• Enjoyable and active
• Enhance corporate value
Business growth
Execution of SDGs commitment
Continuous value creation■ Contribution to society ■ Contribution to customers ■ Happiness of employees
Reinforce-ment of
foundation
[E] Environmental circulation Renewable energy, 3R circulation
Creation of pleasant and diverse living environments, local healthcare
[G] Business & Governance No. 1 vendor leasing, unique services
Organizational strength Solid infrastructure
Governance, internal control, management quality
Deployment & extension of measures
• Profitability
• Asset efficiency
Creation of sustainable
circulatory society
13
[S] Social & Community
Quality control
14
Conceptual Image of Long-term Growth
FY2020–FY2022 Mid-term Management Plan
FY2023 and beyond 10 years later
[Conceptual image of profit expansion]
◼ Leases & Finance BusinessBy increasing efficiency and ingenuity, we ensure steady growth over the mid-to-long-term. Build a base for this purpose during FY2020–FY2022 Mid-term Management Plan.
◼ Services and Investment BusinessExpand business of housing rental, equity investment, power generation, collection agency and factoring service during FY2020–FY2022 Mid-term Management Plan to become business pillars.
◼ New businessCreate business by continuing to pursue the corporate philosophy and ESG perspective from a mid-to-long-term perspective.
Identify and build new business centered on non-asset business
Both Services and Investment Businesses to become second and third
business pillars.
Strengthen human resources and
infrastructure to ensure business growth
Continue promotion of sustainability
management to realize corporate philosophy
Operating profit: 30.0 billion yen or more(double of the current figure)
ROA: 1.3%ROE: 8%
Dividend Payout Ratio: 35%Productivity per person: 1.4 times
Long-term target(10 years later)
Set a path during FY2020–FY2022 Mid-term Management Plan and boost corporate value through circulation and creation
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.
<Contact>
Corporate Planning Department
Tel : 03-6204-0608
Email : [email protected]
URL : https://www.r-lease.co.jp
Ricoh Leasing Company, Ltd.
