integrated report 2020 digest spread

10
Company Data and Stock Information 2020 Digest Edition Ricoh Leasing Integrated Report Stock Information (as of March 31, 2020) Corporate Profile (as of March 31, 2020) Officers (As of June 24, 2020) Director Chairman Representative Director Director Director Outside Director Outside Director Outside Director Outside Director Outside Director Outside Director Outside Director Director Outside Director Outside Director Total number of authorized shares Total number of outstanding shares Shareholders Number of shares in a trading unit Share distribution 120,000,000 31,243,223 32,332 (of which 28,664 are shareholders of trading units) 100 10 largest shareholders Shareholder Ricoh Leasing Company, Ltd. Corporate Planning Department New Otani Garden Court 14F, 4-1, Kioi-cho, Chiyoda-ku, Tokyo 102-8563 Phone: +81-3-6204-0608 https://www.r-lease.co.jp/english/index.html RICOH LEASING COMPANY, LTD. 7,896 million yen First Section of Tokyo Stock Exchange (Securities code: 8566) 1,042 people (consolidated) December 1976 Leases and Installment Sales Business Financial Services Business Daisuke Segawa Tokuharu Nakamura Takashi Kawaguchi Hirozumi Sano Kaoru Seto Masaya Futamiya Masako Arakawa Shinji Sato Mari Ebisui Akira Nakamura Atsumi Harasawa Kazuya Ishiguro (full-time) Kazuhiko Tokumine Tokio Kawashima Corporate Name Capital Listed Market Employees Founded Business Directors Directors Who Are Audit & Supervisory Ricoh Leasing Company, Ltd. Foreign corporations, etc. 23.3Financial instrument business operators 0.5Financial institutions 9.1Treasury stock 1.3Individuals / other 11.7Other corporations 54.0Notes: 314 Ricoh Company, Ltd. BBH FOR FIDELITY PURITAN TR: FIDELITY SR INTRINSIC OPPORTUNITIES FUND Japan Trustee Services Bank, Ltd. (trust account) BBH FOR FIDELITY LOW-PRICED STOCK FUND (PRINCIPAL ALL SECTOR SUBPORTFOLIO) NORTHERN TRUST CO. (AVFC) RE FIDELITY FUNDS The Master Trust Bank of Japan, Ltd. (trust account) DFA INTL SMALL CAP VALUE PORTFOLIO Japan Trustee Services Bank, Ltd. (trust account 9) STATE STREET BANK AND TRUST COMPANY 505001 Japan Trustee Services Bank, Ltd. (trust account 5) 16,540 1,050 796 699 549 442 417 333 328 53.7 3.4 2.6 2.3 1.8 1.4 1.4 1.1 1.1 1.0 1. The 418,229 treasury stock shares held by Ricoh Leasing are not included in the number of shares held by the above-mentioned 10 largest investors. 2. Stock ownership percentages do not include treasury stock. 3. Effective April 23, 2020, Ricoh Company, Ltd. transferred 6,160,000 shares of Ricoh Leasing common stock to Mizuho Leasing Company, Limited. With this transfer, Ricoh Leasing became an equity-method affiliate of Ricoh Company, Ltd. and Mizuho Leasing Company, Limited. In d e p e n d e nt offic ers a p p ointe d a c c ordin g to T o ky o Sto c k E x c h a n g e sta n d ard s Shares held (1,000 shares) Stock ownership percentage (%)

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Page 1: Integrated Report 2020 Digest Spread

Company Data and Stock Information

2020Digest Edition

Ricoh LeasingIntegrated Report

Stock Information (as of March 31, 2020)Corporate Profile (as of March 31, 2020)

Officers (As of June 24, 2020)

Director Chairman

Representative Director

Director

Director

Outside Director*

Outside Director*

Outside Director*

Outside Director

Outside Director*

Outside Director

Outside Director* Director

Outside Director*

Outside Director*

Total number of authorized sharesTotal number of outstanding sharesShareholdersNumber of shares in a trading unitShare distribution

120,000,00031,243,223

32,332 (of which 28,664 are shareholders of trading units)

100

10 largest shareholdersShareholder

Ricoh Leasing Company, Ltd.Corporate Planning Department

New Otani Garden Court 14F, 4-1, Kioi-cho, Chiyoda-ku, Tokyo 102-8563Phone: +81-3-6204-0608https://www.r-lease.co.jp/english/index.html

RICOH LEASING COMPANY, LTD.7,896 million yenFirst Section of Tokyo Stock Exchange (Securities code: 8566)1,042 people (consolidated)December 1976Leases and Installment Sales Business Financial Services Business

Daisuke SegawaTokuharu NakamuraTakashi KawaguchiHirozumi SanoKaoru SetoMasaya FutamiyaMasako ArakawaShinji SatoMari EbisuiAkira NakamuraAtsumi Harasawa Kazuya Ishiguro (full-time)

Kazuhiko TokumineTokio Kawashima

Corporate Name

Capital

Listed Market

 

Employees

Founded

Business

Directors

Directors Who Are Audit & Supervisory

Ricoh Leasing Company, Ltd.

Foreign corporations, etc.

23.3%Financial instrument business operators

0.5%Financial institutions

9.1%

Treasury stock1.3%Individuals / other11.7%Other corporations54.0%

Notes:

314

Ricoh Company, Ltd.

BBH FOR FIDELITY PURITAN TR: FIDELITYSR INTRINSIC OPPORTUNITIES FUND

Japan Trustee Services Bank, Ltd. (trust account)

BBH FOR FIDELITY LOW-PRICED STOCK FUND(PRINCIPAL ALL SECTOR SUBPORTFOLIO)

NORTHERN TRUST CO. (AVFC) RE FIDELITY FUNDS

The Master Trust Bank of Japan, Ltd. (trust account)

DFA INTL SMALL CAP VALUE PORTFOLIO

Japan Trustee Services Bank, Ltd. (trust account 9)

STATE STREET BANK AND TRUST COMPANY 505001

Japan Trustee Services Bank, Ltd. (trust account 5)

16,540

1,050

796

699

549

442417333328

53.7

3.4

2.6

2.3

1.8

1.41.41.11.1

1.01. The 418,229 treasury stock shares held by Ricoh Leasing are not included in the number of shares held by the above-mentioned 10 largest investors. 2. Stock ownership percentages do not include treasury stock. 3. Effective April 23, 2020, Ricoh Company, Ltd. transferred 6,160,000 shares of Ricoh Leasing common stock to Mizuho Leasing Company, Limited. With this transfer, Ricoh Leasing became an equity-method affiliate of Ricoh Company, Ltd. and Mizuho Leasing Company, Limited.

*Independent officers appointed according to Tokyo Stock Exchange standards

Shares held(1,000 shares)

Stock ownershippercentage (%)

Page 2: Integrated Report 2020 Digest Spread

Community CenterHOTEL

Mid-to-long-term Vision: “Become a Circulation-Creating Company”

Corporate Philosophy

Basic Stance

We will be a bridge to an abundantfuture with our independent

financial services.

Overview of Sustainability Management

Corporate Philosophy

Mid-term Sustainability Management Plan

In order to realize our corporate philosophy, the Group will create common value with society through sincere corporate activities and promote initiatives designed to achieve a sustainable society. To this end, we will be engaging in the following activities.

Sustainability efforts● Emphasizing harmony among the environment,

society, and the economy in all Ricoh Leasing Group activities

● Continuing business activities that have a positive impact on the environment

● Solving environmental and social issues while achieving economic growth, and contributing to the achievement of the Sustainable Development Goals (SDGs)

● Communicating proactively with stakeholders and continuing to live up to society’s expectations

Materiality (Key issues)

Mid-to-long-term Vision: “Become a Circulation-Creating Company”

Our approach to Sustainability

The Ricoh Leasing Group is continually working to enhance its sustainability management with an eye to achieving sustainable growth for society through its business activities. The Sustainability Committee, formed in 2020, has held discussions about and formulated the Approach to Sustainability, Review of Materiality, and Mid-term Sustainability Management Plan.

1. We will contribute to the development of a sustainable global society with our integrity and reliable business activities.2. We will connect our customers to the future and society with services beyond expectations.3. We will create an enjoyable and active working environment while respecting each other.4. We will answer shareholders’ expectations by enhancing corporate value.

0201 Ricoh Leasing Integrated Report, Digest Edition

EditorialPolicy

The Ricoh Leasing Company Integrated Report was published in September 2020 as a means to inform stakeholders about our value creation initiatives. This is a digest version of the integrated report. CONTENTS

P1 Corporate Philosophy, Basic Stance, Overview of Sustainability ManagementP3 The Story of the Growth of the Ricoh Leasing Group’s BusinessP5 Message from the CEOP7 Financial and Non-financial Highlights

P9 Mid-term Sustainability Management PlanP11 Mid-to-long-term VisionP13 Business StrategyP15 Sustainability

Page 3: Integrated Report 2020 Digest Spread

The Story of the Growth of the Ricoh Leasing Group’s Business

Starting out in the business of leasing office equipment, the Ricoh Leasing Group has adapted to a dramatically changing society. We have expanded our lines of business and rolled out new services along with the growth of our customers and business partners.

Strengthen sales support functions and expand lines of businessProvide financial services according to customer needs

Contribute to solving social problems through businessAiming to create a sustainable, circulatory society

Factoring Servicesfor Healthcare &

Nursing-Care Facilities

CollectionAgency Services

IT-RelatedEquipment

Loans

Printers

Copiers andMFPs

Environment-related

equipment

Medicalequipment

Housing rental

Solar powergeneration

Partnershipsand equity

contributions

Creation ofsustainable

circulatory society

Customer Vendor(4) Sign over the good

(1) Negotiations: Choose a good

(2) Sign lease  agreement

(3) Sign sales  agreement(6) Pay leasing

fee(5) Pay good purchase price

Capital marketFinancial institutions

Financing

Total of transaction volume and investment amount Credit rating

AA-JCR

Japan Credit RatingAgency, Ltd.

AR&I

Rating and InvestmentInformation, Inc.

BBB+S&P

(Standard & Poor's)

Partner companiesApprox.

400,000Approx.

6,000 companies

Ricoh business

40%

Non-Ricoh business

60%As of March, 2020

Leasingstructure

Ricoh Leasing’sStrengths Partner vendors

Ricoh LeasingCompany, Ltd.

Approx. Approx.

Launched support of sales by leasing office equipment Supported Japan's rapid economic growth.

0403 Ricoh Leasing Integrated Report, Digest Edition

Page 4: Integrated Report 2020 Digest Spread

The Ricoh Leasing Group will complete its evolution to“Become a Circulation-Creating Company” and for the children who will be the future, we will continue working to build a better society.

Representative Director, President and Chief Executive OfficerTokuharu Nakamura

My name is Tokuharu Nakamura, President and CEO of Ricoh Leasing since April 2020. I am the first person in the company's history who was promoted to president from within the company. I now put my experience and knowledge to work to live up to the many expectations from inside and outside the company, in order to achieve healthy growth. And I will remain committed to these efforts.

In line with our vision to go “beyond leasing” as set forth in the previous Mid-term Management Plan, we have worked to enhance our earning power. In the leasing business segment, we have bolstered alliances through means such as cultivating new businesses and working with vendors to provide added value to customers. Our focus on creating value for customers outside of leasing has seen us develop unique financial services through alliances with new partners. As a result of these efforts, we were able to meet our Mid-term Management plan targets for lease and installment sales, as well as for operating assets, one year ahead of plan. However, due primarily to an increase in the allowance for doubtful accounts owing to the spread of COVID-19, we recorded an operating profit of 17.0 billion yen, 18.3 billion yen short of the Mid-term Management Plan target.

The spread of COVID-19 has upended all of our lives, to say nothing of the Group’s business environment. However, as we move from a life with COVID-19 to one after

COVID-19, and as we transition to a new normal for society, we believe many business opportunities will come precisely because the business environment is constantly changing. In addition to the loan business, the Ricoh Leasing Group also provides added value in the form of products and services through its leasing and rental businesses. The distribution and circulation of goods and services will enrich lives and the economy, serving as the veritable lifeblood of society. Through this circulation, we solve social issues and contribute to achieving the SDGs. We seek to achieve not just the 17 SDGs, but our own 18th goal, as well: bringing sustainability to the future through our financing business. This is the social purpose we seek to fulfill.

The mid-to-long-term vision lays out a new goal for the Ricoh Leasing Group: “becoming a circulation-creating company.” Creating circulation — keeping goods and services flowing and not merely consuming — will be a concept key to supporting business activities. We aim to create such circulation through our businesses.At the core of achieving this vision will be a diversity of independent individuals. Through independent thinking, decision-making, and action on the part of every employee working to tackle social issues, a variety of virtuous cycles will arise. We aim to then leverage the resulting synergy among them, achieving sustainable growth that will lead to a circulatory society. My role is to make sure every employee understands that our mission is to create favorable circulation in the

environment, society and the economy, and serve as a bridge to a future of abundance, by adopting “management centered on individuals,” as well as to align employee and company trajectories.

In the new Medium-term Management Plan, we have newly defined our business domains using the letters E, S, and G. E means contributing to environmental circulation and restoration. S stands for social and community. This represents contributing to achieving safe and secure housing and living environments to diverse customer groups and creating rich and vigorous communities. G stands for business and governance. This represents contributing to economic activities: work, commerce, and manufacturing. A noteworthy feature of the new Mid-term Management Plan is that our business domains are linked to seven business growth strategies. Executing strategies not only leads to our own growth, it also contributes to fostering a sustainable circulatory society.

With respect to organizational changes within the Group, this fiscal year we became a company with an audit and supervisory committee. By making our system of management faster and more dynamic we will improve the company’s corporate governance structure. We also established a new Sustainability Committee. Along with holding cross-organizational discussions about sustainability issues, the committee has put in place a system for reporting its findings to the Board of Directors to have them discussed. These efforts will be central to more quickly achieving sustainability-focused management.

Independent individuals pursuing circulation in a number of forms  — Become a Circulation- Creating Company

Our social purpose as the Ricoh Leasing Group

Three years of preparations to go “beyond leasing”

Aiming to link ESG and our business

Message from the CEO

September 2020

0605 Ricoh Leasing Integrated Report, Digest Edition

Page 5: Integrated Report 2020 Digest Spread

Financial Highlights Non-financial Highlights

0807 Ricoh Leasing Integrated Report, Digest Edition

■Scope 1 ■Scope 2CO2 emissions

2018/32016/3 2017/3 2020/32019/3

(t-CO2)

500

1,000

1,500

9699699999991,0391,0391,0891,0891,1081,108

0

619619 616616 599599 594594 590590

489489 473473 440440 405405 379379

Percentage of female managers (Ricoh Leasing)

・Executive officers and directors are included for 2018/4 only

2018/42016/4 2017/4 2020/42019/4

(%)

0.0

5.0

10.0

15.0

20.0 18.5

13.315.6

11.910.9

Annual paid vacation days taken (Ricoh Leasing)

・Periods run from 1/1 to 12/31

20172015 2016 20192018

(%)

0

25

50

75

100

81.584.684.878.868.4

Percentages of Independent and female officers (Ricoh Leasing)

■ Independent officers■Female officers

・Transitioned to a company with an audit and supervisory committee in June 2020

2018/62016/6 2017/6 2020/62019/6

(%)

0

20

40

50

30

10

(%)

0

5

10

25

20

15

50.050.045.5

40.040.0

21.416.7

9.110.010.0

Net sales

2018/32016/3 2017/3 2020/32019/3

(billion yen)

0

200

250

300

350

304.3 313.9332.2332.2

275.8291.1

Net sales increased 10 periods in a row, setting a new record (up 5.8% year-on-year)

Profit attributable to owners of parent

2018/32016/3 2017/3 2020/32019/3

(billion yen)

0

10

11

12 11.811.9

11.311.7

11.0

The first decrease in two periods (down 1.0% year-on-year)

Total of transaction volume and investment amount

2018/32016/3 2017/3 2020/32019/3

A new record was achieved as a result of steadily acquiring contracts (up 13.9% year-on-year)

・ Transaction volume refers to total payments collected during the contract period・ Investment amount refers to asset purchase amounts

(billion yen)

0

200

300

400

500

393.5360.1 369.0

489.1429.3

・ Operating assets shows pre-deduction balances of securitizations of lease receivables ・ Default rate = Credit loss amount ÷ average balance of operating assets

Operating assets / default rate

New record achieved due to steady operating asset accumulation (up 97.2 billion yen year-on-year)

2018/32016/3 2017/3 2020/32019/3

(billion yen)

0

500

625

750

875

1,0001,019.1

921.9856.3

777.3 808.6

(%)

0.00

0.10

0.15

0.20

0.25

0.30

0.18 0.17 0.17 0.160.160.18

Operating assets

Default rate

Page 6: Integrated Report 2020 Digest Spread

To further contribute to social issues through our business and accelerate sustainability management, we have newly identified four materialities. Furthermore, we have formulated a Sustainability Mid-term Management Plan that integrates the “E,” “S,” and “G” business domains with non-financial initiatives as specific strategies and measures to address these materialities. We aim to realize our Mid-to-long-term Vision of “Become a Circulation-Creating Company” through the achievement of this plan.

Mid-term Sustainability Management Plan

● An active and work-friendly workplace environment

6. Create of shared value through our business

7. Strengthen of partnerships with group companies and business partners

8. Diversity & inclusion

9. Human resource development

10. Realize of working style reforms based on health management

Materialities Initiative themes Mid-term Sustainability Management Plan Measures

Develop a virtuouscycle for a sustainable

economy

Create a happinesscompany and society

・ Strengthen value provided by constructing a portal for customers・ Develop measures to further upgrade assets・ Pioneer new fields through diversification of financing methods・ Invest in equity through establishment of an ESG focused capitalizing program, etc.・ Expand new fields through new products and services in all domains・ Strengthen new fields through existing products

・ Further enhance vendor support functions・ Strengthen value provided by constructing a portal・ Collaborate and develop business with investees and alliance partners・ Expand rental business through collaboration with Ricoh Group・ Strengthen existing businesses・ Create new business opportunities

・ Develop personnel measures to improve employees’ happiness value

・ Strengthen career development (support measures) and capacity development

・ Nurture a corporate culture of pride in working・ Practice strategic health management・ Promote work-friendly workplace environments・ Systematize, standardize, and automate・ Enhance internal control and audits

● Further evolve vendor leasing and enhance value provided to customers

● Pioneer new business areas and create new business models

● Expand businesses not dependent on assets

● Further evolve vendor leasing and enhance value provided to customers

● Pioneer new business areas and create new business models

● Restructure the rental business

● Expand business under alliance with Mizuho Leasing

● Human resource management that connects employees’ happiness to expansion of company performance

● Create safe, secure, and comfortable housing and living environments

● Create services that are indispensable to daily life

1. Mitigate and adapt to climate change

2. Resource circulation

3. Create a community to live in (and continue to live in)

4. Enhance the infrastructure of life

5. Collaborate and tie up with communities

Materialities Initiative themes Mid-term Sustainability Management Plan Measures

Contribute to a cleanglobal environment

Enhance qualityof life

● Contribute to a clean global environment, rooted in environmental circulation

・ Initiatives in the renewable energy field・ Achieve medium- to long-term CO2 emissions targets

・ Initiatives that contribute to environmental circulation and reduction of environmental load・ Strengthen the rental business

・ Medical: Medical care and nursing care

・ Jobs: Workplaces and offices・ Housing: Residences

・ Develop services that are not dependent on assets and that meet the expectations of society

・ Contribute to society through circulation in the areas of medical, jobs, and housing, in an aging society with a declining birthrate

・ Proactive participation in social contribution activities

1009 Ricoh Leasing Integrated Report, Digest Edition

Page 7: Integrated Report 2020 Digest Spread

It is an environment in which every employee can address social issues and enjoy tackling solutions to these, and the thoughts, judgments, and actions of employees themselves create positive cycles and solve issues. This form of management grows sustainably through the summing of such achievements.

What is “management centeredon individuals”?“Circulation” refers to creating new value within diverse

environmental, societal, and economic activities, and connecting that value inside and outside the community to create even more value. We will contribute to the realization of a sustainable circulatory society by creating this new value together with our various stakeholders and circulating it in new business domains.

What is circulation?

Creation ofsustainable

circulatory society

Creation ofsustainable

circulatory society

FY2020-FY2022 Mid-term Management Plan

Environmental circulation

Contributionto society

Contributionto customers

Happiness ofemployees

Continuous value creation

E

GS

“Become a CirculationCreating Company”

“Become a CirculationCreating Company”

“Beyond leasing”“Beyond leasing”

Advance into new businessesaround the Company’s core

business fields

Setting our FY2017 to FY2019 Mid-term Management Plan as a period for growing beyond leasing, we engaged in the expansion of business areas through the creation of new provided value. From FY2020, we will work to create a sustainable circulatory society centered on sustainability management and create favorable circulation in the environment, society, and the economy by adopting “Become a Circulation-Creating Company” as our new Mid-to-long-term Vision.

Contributing to reasonableenvironmental circulation andrestoration

Business & GovernanceContributing to economic activities work, commerce, manufacturing for society to achieve sustainable growth

Social & Community

Mid-to-long-term Vision

Our VisionCreate favorable circulation in the environment,society and the economy by adopting “management centered on individuals” and be a bridge to an abundant future

FY2017-FY2019 Mid-term Management Plan 5 to 10 years later

Realization of managementcentered on individuals

Realization of managementcentered on individuals

LeasesInstallment

SalesFinancialServices

Contributing to achieving safe and secure housing and living environments to diverse customer groups and creating rich & vigorouscommunities

1211 Ricoh Leasing Integrated Report, Digest Edition

Page 8: Integrated Report 2020 Digest Spread

Housing, living

Returning tosociety and working

Contributing to society throughcycles in medical, jobs, and housing

“Living” itself

MedicalMedical care,nursing care

JobsWorkplaces,

offices

Housing(Residence)

Social & CommunityEnhance quality of lifeS

Social

Environmental CirculationContribute to a clean global environmentE

Environment

RiLTA early capitalization service usable for payroll prepayment

To contribute to the creation of comfortable working environments in companies, in 2019 we began offering the RiLTA early capitalization service.

This service enables customers to make payment ahead of the salary payment date to contracted employees for work performed, meeting employees’ need for prepayment of salary. The service can enhance companies’ benefits programs, increase job recruitment numbers, and improve turnover rates.

Record of sales performancein the environmental field

0

10

20

30

40

50

60(billion yen)

Investment in the power business

Leasing and installment transaction volume

2016/3

23.4

2017/3

24.1

2018/3

31.5

2019/3

37.12.6

2020/3

56.85.9

Business & GovernanceDevelop a virtuous cycle for a sustainable economyG

Governance

414.0 billion yen( +10.9% year-on-year )

206.3 billion yen( +8.2% year-on-year )

Leasing and installmenttransaction volume

Transaction volume ofoffice/IT-related equipment within above

Fiscal year endedMarch 2020

Fast-cashing service

User company

Employees

Link to the attendance information or payable amount2

RiLTA Contract1

Advance payment request3

Send payment information4

5

Originating accountfor transferAccount in nameof user company

We are making contributions to appropriate environmental circulation by expanding our efforts in the environmental field. We have expanded our efforts in the environmental field, such as by being an operator in the solar power generation business, as well as by financing solar power generation facilities, with the aim of making renewable energy widespread. Because initiatives to address renewable energy truly have a great effect in realizing environmental circulation, we will continue to play a part in creating a clean global environment while we diversify the scope and the methods of our initiatives.

To contribute to achieving safe and secure housing and living environments for diverse customers, and to create rich and vigorous communities, we have expanded our existing businesses and have developed and offered new services. To address social issues such as demographic changes, a declining birthrate, and an aging population, we will continue to provide value to our customers and contribute to the realization of prosperous lifestyles, while creating cycles in medical, jobs, and housing – areas that express “living” itself.

We will contribute to the sustainable growth of society through the leasing and installment business that forms the foundation of our Group. By providing sales support to approximately 6,000 vendor companies, we support the economic activities of customers in approximately 400,000 companies. With the strengths we have cultivated, high-quality, high-efficiency business systems and processes, we will engage in continuous value creation through further evolution of vendor leasing.

Medical equipment leasing / installments

Doctor support loans

Medical field (medical care / nursing care)

Occupational field(workplaces / offices)

Housing field(residences)

Contributing to extending healthy life expectancies to enable active lifestyles

Collection agency services

Factoring services for nursing-care facilities

RiLTA fast-cashing service

Contributing to improving the productivity of small- and medium-sized enterprises, with a focus on BPO

Housing-related loans

Collection agency services with ancillary rent guaranteesand insurance against unattended death

Housing leasing business

Providing safety, security, and comfort in housing and contributing to the creation of livable towns

Business Strategy

Futurestrategies

1. Promotion of the solar power generation business and equity investment along with financing of solar power generation facilities against a background of the Feed-In Tariff (FIT) system2. Promotion of a model of consuming the solar power one generated as a post-FIT strategy3. Tackling other power sources while diversifying methods4. Further expansion of initiatives for energy-saving products such as air-conditioning and lighting equipment, and eco-cars such as EVs

Customer Customer Customer Customer

Mechanism of vendor leasing sales

Manufacturers / Vendors

Ricoh Leasing

Property negotiationsand proposalsfor lease usage

Proposal-basedsales activities

Become a business partner of vendorsand develop small value amount,

large-volume business

Health andprevention of illness

and injuriesDeclining birthrateand aging society

Declining populationof working age

Improving productivity

Social issues

JobsWorkplaces,

offices

Advance payment (transfer)

1413 Ricoh Leasing Integrated Report, Digest Edition

Page 9: Integrated Report 2020 Digest Spread

Sustainability

Support for the TCFD

In August 2019, we endorsed the recommendations by the Task Force on Climate-related Financial Disclosure (TCFD) regarding the disclosure of climate-related financial information. Looking ahead, we will assess the financial impacts of climate-related risks and opportunities alike, will promote information disclosure (governance, strategy, risk management, indicators, and goals) based on the TCFD’s recommendations, and will reflect these in our business strategy and risk management.

Promotion of the 3Rs (Reduce, Reuse, Recycle)

Medium- to long-term CO2 reduction targets and results (Scope 1 + 2)

A leasing company bears the duty of properly collecting equipment for which lease contracts have expired, and must aim for 100% collection.

Our Group’s approach to resource circulation through the leasing business is to promote the 3Rs (Reduce, Reuse, Recycle) by properly collecting leased equipment upon expiration of lease contract periods.

We launched the Pink Ribbon Campaign in 2004, and have continued it to raise awareness of breast cancer screening. In October 2019, which is Pink Ribbon Month, 23 employees participated in the Pink Ribbon Smile Walk sponsored by the Japan Cancer Society in Tokyo. We also encourage acquisition of Pink Ribbon Advisor certification to engage in activities with proper knowledge of breast cancer.

・ Recycling rate of properties with expired leases

Overall 86.2% Non-Ricoh products 83.3%Ricoh products 99.8%

Collaboration and cooperation with communities

Conservation of biodiversity

Since 2005, our Group has donated to the Green Fund of the National Land Afforestation Promotion Organization as a social contribution-oriented special benefit plan for shareholders. Every year since that year, employees have joined hands to take part in the greening campaign of the Mt. Fuji Green Fund Forest .

This campaign operates under an 80-year plan from the year 2000 to restore the Mt. Fuji disaster area left by Typhoon No. 17 in 1996 into a forest area that supports a rich ecosystem. We have called on our employee as well as other companies inside and outside the Ricoh Group to join the group of participants, resulting in 111 people taking part in FY2019, the 15th year of the campaign.

Number of participants in Mt. Fuji greeningcampaign (2005-2019) 1,591

18Total number of employees with Pink Ribbon Advisor certifications

・ Amount of donations 4.4 million yen

・ Continuation of Pink Ribbon Campaign for 16 years

・ Continuation of Mount Fuji greening activities  for 15 years

・ Participation in Ricoh Global SDGs Action Month

Selected for inclusion in the climate change A List, the top evaluation

*An international non-profit organization that promotes the reduction of companies’ and governments’ greenhouse gas emissions, and the conservation of water resources and forests. CDP collaborates with approximately 650 institutional investors with US $96 trillion in total assets under management, and encourages companies to disclose and manage environmental information.

The climate change A List, is a list of companies made by CDP* from a survey of about 8,400 companies worldwide, and which recognizes companies that are making particularly outstanding efforts in their actions and strategies to address climate change. In fiscal 2019, 179 companies, including 38 Japanese companies, were selected for the A List.

We will continue to address a variety of challenges facing society and actively play a leading role in industry and in society.

Environment

target standards2015 2016 2017 2022

Mid-termSustainability target

2030Target

2018 2050 (FY)Target

1,108

886

1,089

8711,039

832999

799

1,289

774

1,299

4100

1,2941,283(t-CO₂)

Estimated real emissionsValues without self-help efforts

Redemption of 194t-CO2 out of 969t-CO2, about 20% of the total, through emissions purchasing

0

6008001,0001,2001,400

400

2019

1,304

969

775

2050CO2 reduction target

0t-CO2

30% reduction(Compared to FY2015)

CO₂ emissions

774t-CO2

63% reduction(Compared to FY2015)

CO₂ emissions

2030CO2 reduction target

410t-CO2

2015target standards

1,108t-CO₂

Development of activities in line with our social contribution priority areas

● Main results and achievements in FY2019

● Main results and achievements in FY2019

2022CO2 reduction target

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Human resources

The Ricoh Leasing Group has sought to realize motivation (active participation) in every employee through diversity and inclusion (D&I) and work-life management*. To realize the “management centered on individuals” that we have set forth in our new Mid-term Management Plan, we will enact human resources measures so that every employee thinks and acts on their own while also motivating each other through communication to work as a team, going beyond motivation to attain happiness.

We have introduced a flextime system and a staggered work hours system to promote work time management that fit autonomous and efficient working styles. In fiscal 2019, we officially launched and conducted a telecommuting system without major problems despite COVID-19. Our head office, relocated to Kioicho in Chiyoda-ku in January 2020, was designed under the concept of an office allowing anyone to work anywhere at any time, with the aim of realizing a comfortable office environment that improves productivity.

The role ofsuperiors

Employees’ happiness = Company growth

Action = Repetitionof verification

“I’ll try another way”

Intrinsic motive“I want to do it!”

Sense of accomplishment“Let’s do it again!”

Exercise ofimagination

“How can I do it?”

Offer support Encourage

opportunities

CreatePraise

Enjoy

Realizationof imagination“I finally did it!”Cycle of

happinessRealizing comfortable office environments through free addresses

• Forbes JAPAN WOMEN AWARD 2019, Corporate Division

(3rd place, 300 to 999 employees category)

• Implementation of management training for female employees

• Revision of programs for rehired employees

Happiness  t work Self-actualization

・・・

・・・

Fun andfulfillment

Challenges

Growth Health

Psychologicalsafety

Leisurefulfillment

α waves

→Self-directed career formation ・ Support for capacity  development→Professional human

resources development→Implementation of the

RLTT* program*Ricoh Leasing Top Talent

Ricoh Leasing is developing “Happiness αt work” as a concept for new human resources strategies. “α” includes “anything you want” among its meanings, and incorporates an aim of “all employees can freely set what they hope to obtain and realize through ‘plus alpha (+α),’ to become happy through work.”

Human resources strategy

Realization of working style reforms

D&I is founded on the idea of all people recognizing and respecting others’ individuality, characteristics, sense of values, and so on, with all employees having opportunities to grow through work and with diverse individualities acting to generate innovation. Setting D&I as the foundation of our human resources management, our Company promotes the creation of workplace environments where diverse human resources can play active roles regardless of gender, age, form of employment, new graduate or mid-career hire, presence of disabilities, race, nationality, lifestyle, religion, sexual orientation, gender identity, and so on.

Diversity & inclusion (D&I)

Under the health slogan of “Health First, Work Second,” we conduct initiatives to maintain and improve the health of our employees and improve the workplace environment. We maintain a 100% rate of participation in health examinations, and, drawing on the characteristics of our workplaces that have many female employees, have created an environment that makes undergoing examinations easy. As a result, for the year 2020 we were selected as a Health & Productivity Stock for the third consecutive year, and for inclusion in the Health and Productivity Management Organization Recognition Program (“White 500”) for the fourth consecutive year.

Health management

● Positive challenge

→Adoption and operation of a new evaluation system (absolute evaluations)→Fostering a workplace

culture of praising each other

● Fair and impartial   treatment →Implementation of vertical,

horizontal, and diagonal communication→Promotion of active

participation by women→Expansion of employment

for people with disabilities→Strengthening of

LGBT-related initiatives

● D&I→Enhancement of health

promotion support measures→Implementation of mental

health measures

● Health management→Creation of environment

allowing selection from among diverse working styles→Enhancement of facilities

management→Strengthening of disaster

countermeasures

● Work style innovation

Practice of “management centered on individuals”

*From the belief that enhancement of work and private life calls for individuals to actively manage both of these, our Company uses the term “work-life management” instead of “work-life balance.”

● Main results and achievements in FY2019 ● Main results and achievements in FY2019

・ Breast cancer screening rate: 97.4%・ Uterine cancer screening rate: 95.5%・ Smoking rate: 17.6%・ Selected in 2020 as a Health & Productivity Stock

for the third consecutive year・ Selected for inclusion in the Health and Productivity

Management Organization Recognition Program (“White 500”) for the fourth consecutive year

1817 Ricoh Leasing Integrated Report, Digest Edition